India Will Move From Minimum Wage To Living Wage: Implementation of some pending reforms in labor laws could be on the agenda of the new Bharatiya Janata Party (BJP) government for 100 days after the general elections, officials familiar with the matter said.
India Will Move From Minimum Wage To Living Wage
Implementation of some pending reforms in labor laws could be on the agenda of the new Bharatiya Janata Party (BJP) government for 100 days after the general elections, officials familiar with the matter said.
At present workers get minimum wage. However, many companies take several measures to avoid minimum wage. In such a situation, the government is going to take important steps to amend the Minimum Wage Act.
The government is soon planning to introduce a living wage system instead of the minimum wage for employees. According to reports, the government is seeking help from the International Labor Organization (ILO) for a living wage.
In India, the living wage system can be implemented by the next year i.e. 2025. About 90 percent of workers in India work in the unorganized sector. Many of these employees do not even get minimum wages. In such a situation, the living wage system is being introduced to ensure that everyone gets a minimum salary. Let’s know what is living wage and how it differs from minimum wage system?
What is the minimum wage system?
At present minimum wage system is in force. An hourly salary is deducted in this. In simple terms the focus is on food, clothing and shelter. Minimum wages vary across states in India. In Maharashtra, an employee gets Rs 62.87 per hour and in Bihar Rs 49.37 per hour.
Whereas in America, an employee gets 7.25 dollars per hour which is about 605.26 rupees. Many employees in the unorganized sector in the country do not even get minimum wages. No strict action is taken by the government on these areas.
What is Living Wage System?
The Living Wage system goes beyond food, clothing and shelter. Living wage is more than the basic needs of a government employee.
The Living Wage System also takes care of the means of social security for the employee and his family. If the government introduces a new system, the salary of the employees will be based on the expenditure on food, clothing, housing, education and health needs.
Experts believe that after the implementation of the new system in the country, people can get higher wages than before. Currently more than 50 crore people in India live on daily wages. Also, more than 90 percent of the workers are in the unorganized sector.
Workers in the unorganized sector are likely to benefit greatly from the new system regarding wages. Another benefit of this would be that it could improve the distribution of wealth among people working in different sectors.
Amazing! ‘LIVING wages’ to replace India’s MINIMUM wages by 2025?https://t.co/UsCs9STJMY
— ET NOW (@ETNOWlive) April 4, 2024
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