India is considering shifting from the minimum wage to living wages to pull millions of people out of poverty. New Labour Law: ministry to replace minimum wage by living wage. While it can have huge financial implications for India Inc and the government as a living wage is indexed to inflation.
The move could be a game changer for the country as it strives to meet its Sustainable Development Goal (SDG) commitment of eliminating extreme poverty by 2030. “Initial discussions have begun within the labour ministry.
India could seek help from the International Labour Organisation (ILO) to arrive at living wages if the idea gets a political backing,” a senior government official told media on the condition of anonymity. The ministry has asked officials to weigh the pros and cons of such a step.
They have also been asked to look at its economic, social and financial implications. A minimum wage is the amount required for subsistence and is set by law. The living wage, on the other hand, is necessary for workers to meet their basic living requirements. The difference between the two may range from 10 to 25 per cent.
Also Read: CBSE class 10 12 Exam date announced: click here to check
Also Read: LPG Subsidy: good news for New Year; Cooking gas subsidy money will increase
The members of the ILO have also reportedly requested the United Nations to help them with a better understanding of living wages by undertaking peer-reviewed research. India is a founding member of ILO. In India, the minimum wage has been fixed at Rs 178 per day.
Comments are closed.