Minimum wages are accepted globally to be a vital means to both combating poverty and, equally crucially, ensuring the vibrancy of any economy. While a national minimum wage of ₹176 per day had been recommended in 2017, an expert committee constituted by the Labour Ministry had in February this year recommended that a “need based national minimum wage for India” ought to be fixed at ₹375 per day (₹9,750 per month). The Finance Ministry’s Economic Survey, in July, had in a chapter titled ‘Redesigning a Minimum Wage System in India for Inclusive Growth’ stressed the importance of establishing an effective minimum wage system. Such a statutory national minimum wage would have multiple impacts including helping lift wage levels and reducing wage inequality, thus furthering inclusive growth, according to the survey. The ultimate success of the Code will be determined by the extent to which the minimum wage set is both fair and actually implemented so as to benefit the millions of workers in the unorganised sectors of the economy.

Source: The Hindu November 16, 2019 18:45 UTC