An expert committee appointed by the Labour Ministry has recommended fixing the national minimum wage for India. The recommended minimum pay should be irrespective of sectors, occupations, skills, and rural-urban locations for a family comprising of 3.6 consumption unit. According to the expert committee’s recommendations, the minimum wage of a worker should be at Rs 375 per day or Rs 9,750 per month as of July 2018.
Additionally, it recommended introducing a house rent allowance or city allowance of Rs 55 per day or Rs 1,430 per month for urban workers. The report has also recommended different national minimum wages for different geographical regions of the country to suit the local realities and in accordance with socio-economic and labour market contexts.
The committee has also recommended reviewing the consumption basket every five years, subject to the availability of NSSO-CES data. It has said that the government should revise and update the basic minimum wage at least in line with the consumer price index (CPI) every six months, to reflect changes in the cost of living. The report will be put before the Central Advisory Board/tripartite bodies for necessary consultations and approval of the methodology.
The expert committee was formed by the Labour Ministry on January 17, 2017, under the Chairmanship Anoop Satpathy, Fellow, V. V. Giri National Labour Institute (VVGNLI) to review and recommend methodology for fixation of National Minimum Wage (NMW).
It has submitted the report on “Determining the Methodology for Fixation of the National Minimum Wage” to the government on February 14, 2019. The report is on the Ministry’s website, www.labour.gov.in, for facilitating the process of consultation and dialogue among social partners and stakeholders and seeking necessary approval of methodology from tripartite bodies.