27 October, 2020

Universal Minimum Wage And Its Implementation

The distance from ground reality to optimistic wage proposals

Photograph by PTI
Universal Minimum Wage And Its Implementation

Barring a few states, the minimum floor level of wages in India continues to lag behind those in most other countries including neighbouring Nepal and China. One of the tasks before the next government would be to take a decision on the recommendations of a new committee that has suggested ­almost doubling the minimum wage from Rs 176 per day to 375 per day (or Rs 9,750 per month) as of July 2018.

This is to be irrespective of skills, sectors, occupations and rural/urban locations for a family comprising a 3.6 consumption unit. It has also recommended an additional Rs 55 per day, i.e. Rs 1,430 monthly rent allowance (city compensatory allowance), for urban workers. There are currently many states which do not even ensure Rs 176 per day as minimum wages for casual and unskilled labour.

The recommendations of the committee appointed in 2017, which submitted its report in February this year, are exp­ected to be taken up by the new government after the general elections in April/May, along with the new wage code legislation that, among other things, seeks to...



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