India plans to switch from a minimum wage system to a living wage system by 2025. The Indian government, with the International Labour Organisation’s (ILO) help, plans to establish a framework for estimating and implementing the living wage.
Experts’ take
At February’s Meeting of Experts on wage policies, the ILO actively advocated the concept of living wages; and on 13 March, the ILO’s governing body decided to work on this endorsement.
Experts state that this shift is mainly to bring millions out of poverty. India’s workforce exceeds over 500 million workers, with 90% employed in the unorganised sector.
There have been no changes made in the national wage floor since 2017, even though several Indians earn a daily minimum wage of ₹176 or more. Experts state that inconsistencies in implementing wage regulations across states have caused wage discrepancies.
Promoting economic benefits and workers’ welfare
In 2019 India enacted the Code on Wages, being a founding member of the ILO and a permanent member of its governing body since 1922. This code, upon implementation, suggests a universal wage floor applicable to all states.
India, through ILO’s guidance, plans to highlight the positive economic outcomes of executing living wages to enhance capacity and systemic data collection. The living wage is the minimum wage necessary to afford a quality life for both employees and their families, while taking into account the country’s circumstances, along with the total work performed during regular hours.
By 2030, India plans to achieve the Sustainable Development Goals (SDGs), while also focusing on better work opportunities and economic growth.
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