Why is it necessary to fix a minimum wage?
The HinduThe story so far: On August 8, the President gave his assent to the Code on Wages, 2019, that had earlier been approved by Parliament. Following the consultation, the Centre will notify the rules that will create the mechanisms to fix a floor wage that would then undergird the minimum wages for different categories of workers — unskilled, semi-skilled, skilled and highly skilled — that the States and Central government would have to set and enforce. The Code acknowledges that the aim in setting the floor wage is to ensure “minimum living standards” for workers and the draft rules incorporate criteria declared in a landmark judgment of the Supreme Court in 1992 as well as recommendations of the 15th Indian Labour Conference. 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. 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.