Economic Survey On Minimum Wage System

By Moderator July 5, 2019 13:26

India must have a well-designed minimal wage approach, which might reduce the wage inequality, relieve poverty and also contribute inclusive growth, particularly at lower rates, according to the Economic Survey 2018-2019.


  • In India, the minimum/low wage system has expanded and also be complicated. In fact, the very first pair of the complexities that originate from the problems concerning its own coverage.
  • Now, the minimum wage approach, under the Minimum Wages Act, 1948, at India is complicated, with 1,915 distinct minimum salaries that are defined for the different project classes across the states, ” the survey stated.
  • The survey said that the federal employees were covered under minimum wage legislation in just 18 States and in the union territories.
    • In its 2018 India Wage file, the ILO stated that 66 percent of their wage employees in”scheduled job” were covered under the minimum wage system.
    • In reality, it pointed out that although the legislation didn’t discriminate between both the men and the women, evaluation of the various salary showed a prejudice.
      • For example, the girls dominate in the class of domestic employees while men predominate in the class of security guards. While these two jobs fall in the group of the unskilled workers, the low wage rate for its national employees inside a State is always lower compared to minimum wage rates to the safety guards
    • Furthermore, the well-designed wage system will get rid of the wage inequality particularly at lower rates and also one of those women’s who constitute the vast majority of the lowest rungs of the wage distribution.
    • Also, in accordance with the record, a simple, coherent and also enforceable minimum wage system ought to be equipped with the assistance of the technologies as minimum wages push up wages and also reduce the wage inequality without considerably affecting the employment.

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By Moderator July 5, 2019 13:26