Central Government is expected to increase the minimum wage of Workers: Check full article

According to The Economic Times, the central government is thinking about implementing the recommendations of a high-level expert council, which could lead to an increase in the minimum wage that is required nationwide. Additionally, it was mentioned that officials aim to enforce the proposed floor wage, determined by an expert panel led by SP Mukherjee since 2021, before the scheduled general elections in April and May of this year. The committee is about to submit its report, according to people who spoke with the newspaper. It was formed with a three-year mandate that ends in June 2024.

90% of Labour is in the Unorganized Sector

There are almost 500 million workers worldwide, 90 percent of whom labor in the unorganized sector. The floor wage was last changed in 2017 and is currently Rs. 176 per day. States are not legally required to adhere to this rate. Officials contend that a long-overdue change is required to take inflation and the growing cost of living into consideration. The Code on Wages, 2019, which gives the central government the jurisdiction to set the floor wage based on a worker's minimal living conditions, would enable the proposed new minimum wage to be enforced uniformly across all states. The government can establish different floor wages for different regions based on the Code on Wages, 2019. It does, however, forbid salary reductions if the minimum rates established by the relevant government are above the current floor wage. Different states currently have different daily wage floors, with some having lower floors than Rs. 176 and others having higher ones. This affects migrant laborer mobility within the nation and adds to the discrepancies in minimum salaries. A representative for employers participating in the talks informed the paper, stating, "It is anticipated that the committee will establish an equitable wage to mitigate financial impacts on employers, as well as on central and state governments."

Also read: RBI imposed fines on few banks for various non-compliances: Check complete details here The committee is expected to take inflation and household expenditure into consideration while deciding on the fresh floor wage, also factoring in the needs related to nutrition and non-food essentials.