Basic Wage
Industrial dispute cases
The concept of a "basic" is not peculiar to wages alone. For instance, when any rationing system is introduced for any commodity, whether it is food, or coal, or petrol or some other commodity. It is usual to fix a quantum as the basic ration. The underlying idea is to fix some amount as what every individual coming under the system will get; while additional amounts to be fixed in accordance with further directions will be allowed to some individuals, in view of their special claims as supplementary rations. "Basic" in all such cases is what is normally allowable to all ¾ irrespective of special claims. The phrase "basic wages" is also ordinarily understood to mean that part of the price of labour, which the employer must pay to all workmen belonging to all categories. The phrase is used ordinarily in marked contra-distinction to "dearness allowance", the quantum of which varies from time to time, in accordance with the rise or fall in the cost of living.
Thus understood "basic wage" never includes the additional emoluments which some workmen may earn, on the basis of a system of bonuses related to the production. The quantum of earnings in such bonuses varies from individual to individual according to their efficiency and diligence; it will vary sometimes from season to season with the variations of working conditions in the factory or other place where the work is done; it will vary also with variations in the rate of supplies of raw material or in the assistance obtainable from machinery. This very element of variation, excludes this part of workmen's emoluments from the connotation of "basic wages". (Nuir Mills Co. v. Their Workmen, AIR 1960 SC 985 (988)