Remuneration

Merriam-Webster’s Learner’s Dictionary

“An amount of money paid to someone for the work that person has done .”

As per the Clause(r) of Section 2 of the Labour Act ” Remuneration” means the remuneration or wage to be received in cash or kind from the Enterprise by the worker or employee for the works performed in the Enterprise and this expression also includes any amount to be received in cash or kind for the works done under piece-rate or contract. Provided that, this expression does not include any kind of allowance or facility.

Standard-setting of remuneration:
It was found that the standard-setting of wages or remuneration was based on the following principles

1. Subsistence theory of wages:

• Labour Economist named Ricardo propounded this theory.
• The main theme is wages or remuneration be provided to a worker or an employee only that is required for their living.
• More wages or remuneration, increase there more interest and demand.
• More population be burden to the State.
• Lassele states this principle as Iron Low Wages.

2. Standard living theory of wages:

• The subsistence theory of wages failed within the 19th Century and emerged this theory.
• While determining the wages or remuneration of a worker or an employee, it should be determined on the basis of the requirement that is required or adequate for their livelihood.
• It accepts the principle that the standard of living of a worker or employee directly helps to increase production.

3. The wages fund theory:

• Stuart Mill propounded this theory.
• The main theory is that the management has to establish a fund by allocating the separate amounts to wages or remuneration to a worker or an employee and the average wages or remuneration to be given to an employee or a worker can be determined by dividing the amount so allocated to the fund.
• This concept is based on the remuneration fund and the number of workers or employees and wages or remuneration supplied.

4. Demand and supply theory:

• The main theme is that in which center there will be demand and supply becomes equal, the wages or remuneration of worker or employee should be fixed or determined bearing in mind to same center.

5. The residual claim and theory of wages:

• This theory was propounded by American economist Walker.
• The main them of this theory is that the wages or remuneration should be determined from an amount that is due to having deducted the expenses incurred to the total production.
• The concept of this principle is that increase incapacity of a worker or employees increase wages or remuneration.

6. Marginal productivity theory:

• The main theme of this principle is that the manufacturer has to give wages or remuneration to workers or employees equally to the margin of the production. It is found that most enterprises have accepted this principle.

Presently, it has been found that the following principle has been practiced bearing in mind the above principles as regards wages or remuneration.

1. Concept of minimum wages:

• The main theme of this principle is that the minimum wages or remuneration that is required for the living of workers or employees in the present society shall be required to be given by the employer. It states the lodging, food, clothing, educational, medical and other facilities that are required to worker or employee to be given.
• This concept believes that have not (Poverty) breaches peace in the enterprises so to maintain peace, minimum wages or remuneration be given to worker or enterprises.

2. Concept of fair wages or remuneration:

The main theme of this principle is that the wages or remuneration should be determined differently or more wages than the minimum wages or remuneration to be given to worker or employee.

3. Living wages system:

The main theme of this theory is that wages or remuneration be determined on the basis of the needs of a family of workers or employees.

• Such need includes food, shelter, clothes, education to children, health care, social security, etc.
• This theory refers the standard of living that is obtaining by worker or employee of the developed countries and this one is best wages or remuneration obtaining by worker or employee.

Wages or remuneration in Nepal:

Labour Act 2074
पारिश्रमिक सम्बन्धी व्यवस्था

३४. श्रमिकले पारिश्रमिक पाउने:

(१) प्रत्येक श्रमिकले काम शुरु गरेको मितिदेखि पारिश्रमिक तथा सुविधा पाउनेछ ।

(२) श्रमिकले पाउने पारिश्रमिक तथा सुविधा यो ऐन तथा यस ऐन अन्तर्गत बनेको नियममा तोकिएभन्दा कम नहुने गरी रोजगार सम्झौतामा उल्लेख भए बमोजिम हुनेछ ।

(३) रोजगारदाता र श्रमिकबीचको सामूहिक सम्झौतामा उल्लेख गरिएको अवस्थामा बाहेक श्रमिकले खाईपाई आएको पारिश्रमिक तथा सुविधा घटाउन पाइने छैन ।

३५. पारिश्रमिक भुक्तानी:

(१) रोजगारदाताले श्रमिकलाई पारिश्रमिक भुक्तानी गर्दा रोजगार सम्झौतामा उल्लेख भएकोमा सोही बमोजिम र उल्लेख नभएकोमा रोजगारदाताले निर्धारण गरेको समयमा गर्नु पर्नेछ । तर देहायको श्रमिकलाई देहाय बमोजिम पारिश्रमिक भुक्तानी गर्नु पर्र्नेछ ः–

(क) एक महिनाभन्दा कम अवधि काम गर्ने श्रमिकलाई काम समाप्त भएको मितिले तीन दिनभित्र, र (ख) आकस्मिक काम गर्ने श्रमिकलाई काम समाप्त हुनासाथ ।

(२) उपदफा (१) मा जुनसुकै कुरा लेखिएको भए तापनि पारिश्रमिक भुक्तानी गर्ने समयको बीचको अन्तर एक महिनाभन्दा बढी हुने छैन ।

३६. वार्षिक तलब वृद्धि (ग्रेड) पाउने: एक वर्षको सेवा अवधि पूरा गरेको श्रमिकले मासिकरुपमा पाउने आधारभूत पारिश्रमिकको कम्तीमा आधा दिनकोे पारिश्रमिक बराबरको रकम प्रत्येक वर्ष वार्षिक तलब वृद्धि (ग्रेड) पाउनेछ ।

३७. चार्डपर्व खर्च पाउने:

(१) आफ्नो धर्म, संस्कृति तथा परम्परा अनुसार मनाइने चाडपर्वको लागि प्रत्येक श्रमिकले खाईपाई आएको एक महिनाको आधारभूत पारिश्रमिक बराबरको रकम प्रत्येक वर्ष चाडपर्व खर्चको रूपमा पाउनेछ ।

(२) उपदफा (१) बमोजिमको चाडपर्व खर्च श्रमिकले एक आर्थिक वर्षमा एकपटक आफ्नो धर्म, संस्कृति, परम्परा अनुसार मनाइने मुख्य चाडपर्वको अवसरमा भुक्तानी लिन रोजगारदाता समक्ष लिखित अनुरोध गर्न सक्नेछ । त्यस्तो अनुरोध नगरेको अवस्थामा प्रत्येक वर्षको बडादशंैमा चाडपर्व खर्च भुक्तानी दिनु पर्नेछ ।

(३) चाडपर्व खर्च भुक्तानी दिइने दिनसम्ममा एक वर्ष सेवा अवधि पूरा नभएको श्रमिकले निजले गरेको सेवा अवधिको अनुपातमा चाडपर्व खर्च पाउनेछ ।