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Home Economy

Minimum Wage System in India

July 18, 2019
in Economy, Society
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Redesigning a Minimum Wage System in India for Inclusive Growth

Source: PIB, Economic Survey 2018-19

  • Survey proposes a well-designed minimum wage system as a potent tool for protecting workers and alleviating poverty.
  • Present minimum wage system in India has 1,915 minimum wages for various scheduled job categories across states.
  • 1 in every 3 wage workers in India not protected by the minimum wage law.
  • Survey supports rationalization of minimum wages as proposed under the Code on Wages Bill.
  • Minimum wages to all employments/workers proposed by the Survey.
  • ‘National Floor Minimum Wage’ should be notified by the Central Government, varying across five geographical regions.
  • Minimum wages by states should be fixed at levels not lower than the ‘floor wage’.
  • Minimum wages can be notified based either on the skills or on geographical region or on both grounds.
  • Survey proposes a simple and enforceable Minimum Wage System using technology.
  • ‘National level dashboard’ under the Ministry of Labour & Employment for regular notifications on minimum wages, proposed by the Survey.
  • Toll-free number to register grievance on non-payment of the statutory minimum wages.
  • Effective minimum wage policy as an inclusive mechanism for more resilient and sustainable economic development

 

 

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Tags: Prelims

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