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