Current Minimum Wage in India

Statutory protection for workers to receive a minimum wage can be considered as an indication of a progressive country. It is one of the major grounds of decent effort.

In India, the Minimum Wages Act of 1948 arrange for fixation and enforcement of minimum wages in accordance of scheduled employments.

The said measure aims to put an end to sweating and exploitation of labor. According to NSSO’s (2004-05) 61st round, approximately 395 million workers or 86% out of the entire workforce, which is around 457 million employees, make up the unorganized or informal sector. In fact, at least 7% of those working under the organized sector have been recognized as informal employees increasing the number of informal sector to some 422 million or 92% as a result of low wage payments brought by ensuring a minimum subsistence wage for workers.

Also, the act requires the proper government to fix minimum rates of wages in admiration of employments detailed in the schedule and likewise review and revise the same at intervals not exceeding 5 years.

So far, the number of scheduled employments in India’s central sphere reaches 45 whereas in the States sphere the total is 1650 if all states are counted.

Following the effect in November, 2009, the National Floor Level of Minimum Wage (NFLMW) was raised from Rs 100 per day back in 2007 to Rs 137 per day.

In July, 2015, the National Floor Level of Minimum Wage was increased to Rs160 per day. A new revision has been implemented once again to Rs176 rate per day in June 1, 2017.

Since the respective state governments have been vested to autonomously fix minimum wages, differences among neighboring states became common. Thus, to reduce such issue and bring comparability, India’s Central government has put up 5 regional committees or synchronization of minimum wages.