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6. In trying to keep true to the two points of social philosophy and economic necessities which vie for consideration, industrial adjudication has set for itself certain standards in the matter of wage fixation. At the bottom of the ladder, there is the minimum basic wage which the employer of any industrial labour must pay in order to be allowed to continue an industry. Above this is the fair wage, which may roughly be said to approximate to the need based minimum, in the sense of a wage which is "adequate to cover the normal needs of the average employee regarded as a human being in a civilised society." Above the fair wage is the "living wage" a wage "which will maintain the workman in the highest state of industrial efficiency, which will enable him to provide his family with all the material things which are needed for their health and physical well-being, enough to enable him to qualify to discharge his duties as a citizen." (Cited with approval by Mr. Justice Gajendragadkar in Standard Vacuum Company's Case (1) from "The living Wage" by Philip Snowden)."

NEUTRAL CITATION C/LPA/363/2025 CAV JUDGMENT DATED: 20/08/2025 undefined respectively. Though, the foregoing decisions of the Apex Court relate to the fixation of wages of workmen / labourers governed by the Labour Laws, the observations made by the Apex Court relating to the socio-economic factors, while fixing the wages, cannot be ignored and will apply to the working conditions, responsibilities and the onerous duties of the AWWs and AWHs, more particularly on their inclusion under the umbrella of the Payment of Gratuity Act, 1972. The Constitution Bench of the Apex Court almost 60 years back has emphasized the living conditions of workmen, rise in prices and various complex factors, some of which are economic and some spring from social philosophy give rise to conflicting considerations that have to be borne in mind. The Apex court has categorized, 'minimum basic wage', 'fair wage' and 'living wage'. The 'minimum basic wage' is paid in order to be allowed to continue an industry. Thereafter, above that is the 'fair wage', which may roughly be said to approximate to the need based minimum, in the sense of a wage which is "adequate to cover the normal needs of the average employee regarded as a human being in a civilized society." Above the fair wage is the "living wage" a wage "which will maintain the workman in the highest state of industrial efficiency, which will enable him to provide his family with all the material things which are needed for their NEUTRAL CITATION C/LPA/363/2025 CAV JUDGMENT DATED: 20/08/2025 undefined health and physical well-being, enough to enable him to qualify to discharge his duties as a citizen. Subsequently, in the case of Reptakos Brett. & Co. Ltd. (supra), the Apex Court has asserted the socio-economic facet of the wage structure. The Apex Court held that while fixing the minimum wage, the industry has to add the component of children's education, medical requirement minimum recreation, including festivals/ ceremonies and provision for old age marriages etc. It further held that a wage structure, which approximately answers the above six components, is nothing more than a minimum wage at subsistence level, and the employees are entitled to the minimum wage at all times and under all circumstances. The Apex Court has also cautioned that an employer, who cannot pay the minimum wage, has no right to engage labour and no justification to run the industry.