Skip to main content

Government may double minimum wage, revise formula

By

India may see a doubling of minimum wage nationally to about Rs 18,000 per month as the labour ministry is set to relook at the formula currently used to determine the floor level. 
The ministry is expected to take into consideration a proposal to double the units or individuals considered per family to six from three at present by including dependent parents as well as considering each child as one unit. 
Currently, husband, wife and two children in a family are considered three units, based on which minimum wage is determined for agriculture and non-agriculture workers under the Minimum Wages Act, 1948. The Act is applicable to 47 central sector establishments and includes both agriculture and non-agriculture workers in the country. 
Labour minister Bandaru Dattatreya on Thursday said that a committee will be constituted to relook at the norms of fixation of minimum wages in the country. A decision to this effect was taken at the first meeting of the minimum wage central advisory board reconstituted recently. The last meeting of the board happened in 2010. 
"The Minimum Wage Act of 1948 is very old and the norms under the Act are not up to today's requirement of basic living. Hence a new committee will be shortly set up to revise the norms of fixation of minimum wages," Dattatreya said, adding that terms of reference of the committee will soon be finalised. 
According to Dattatreya, the primary issues that will be looked at include number of units per family, inclusion of dependent parents and treatment of women and children on a par with men. The labour ministry has nearly doubled the minimum wage for agriculture labourers including those hired on contract in March this year, six months after a 42% increase in minimum wages for non-agricultural labourers in August 2016 to Rs 350 a day for unskilled workers, translating into a monthly salary of Rs 9,100 per month.
Consequently, an unskilled agriculture labourer will be entitled to get a minimum wage of Rs 300 per day in C-category towns, up from Rs 160 now, or Rs 8,658 per month, while those in B and A category towns will get Rs 303 and Rs 333 respectively. Reiterating that labour code on wages will address most of wage issues, Dattatreya said he would table wage code bill in Parliament in the ongoing session. 
"Besides, I will soon write to chief ministers of all states to constitute the state level minimum wage advisory boards so that no state pays below universal minimum wage," he said. 
The Economic Times, New Delhi, 04th August 2017

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more