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LATEST NEWS UPDATES | Indian wage disparities worry UN body

Indian wage disparities worry UN body

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published Published on Sep 9, 2018   modified Modified on Sep 9, 2018
-The Telegraph

New Delhi: India's state governments often set their minimum wages lower than the recommended national minimum wage, decided by the Union labour ministry, a report by the International Labour Organisation has said.

It has added that the minimum wages often show large inter-state variations, unrelated to the cost of living, for the same kind of job. This is because the Minimum Wages Act of 1948 does not say on what basis the minimum wages should be fixed or revised.

The India Wage Report, released last month by the UN body, has highlighted what it considers flaws in the way minimum wages are determined in India.

It has recommended that wage revisions be linked to the cost of living, GDP growth and rise in labour productivity.

Santosh Mehrotra, chairperson of JNU's Centre for Informal Sector and Labour Studies, said that any rise in labour productivity --- the workers' output in propelling growth --- should be rewarded adequately with a rise in wages.

A fair wages committee made up of employers, employees and government representatives was formed in 1948 to recommend a framework for fixing minimum wages. The committee defined three levels of wages: the living wage, the fair wage and the minimum wage.

The living wage was the highest and covered the cost of the family's food, clothing and shelter and the education of its children as well as the expenditure on health and old-age insurance.

The minimum wage was defined as subsistence wage plus "standard" wage, the latter being left undefined. The fair wage fell indeterminately somewhere between the living wage and the minimum wage.

Santosh Mehrotra, chairperson of JNU's Centre for Informal Sector and Labour Studies, said that any rise in labour productivity --- the workers' output in propelling growth --- should be rewarded adequately with a rise in wages.

A fair wages committee made up of employers, employees and government representatives was formed in 1948 to recommend a framework for fixing minimum wages. The committee defined three levels of wages: the living wage, the fair wage and the minimum wage.

The living wage was the highest and covered the cost of the family's food, clothing and shelter and the education of its children as well as the expenditure on health and old-age insurance.

The minimum wage was defined as subsistence wage plus "standard" wage, the latter being left undefined. The fair wage fell indeterminately somewhere between the living wage and the minimum wage.

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The Telegraph, 9 September, 2018, https://www.telegraphindia.com/india/indian-wage-disparities-worry-un-body-257951?ref=india-new-stry


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