The document discusses plans to enact a new central statutory minimum wage in India to address inconsistencies between state minimum wages. Key points:
- The Minimum Wages Act will be amended to set a central minimum wage that states must meet but can exceed. Currently, central minimum wages are only advisory.
- The new central minimum will be linked to cost of living adjustments to remain relevant. States will still be free to set higher minimums.
- The central government funds some schemes like NREGA at a minimum of 100 rupees per day, which is less than levels set by some states. A revised central minimum could increase allocation amounts for these schemes.
- Consultations are underway on the proposed
Original Description:
Original Title
Business Standard - 10 Nov 2010 - Process Begins for Statutory Central Minimum Wage
The document discusses plans to enact a new central statutory minimum wage in India to address inconsistencies between state minimum wages. Key points:
- The Minimum Wages Act will be amended to set a central minimum wage that states must meet but can exceed. Currently, central minimum wages are only advisory.
- The new central minimum will be linked to cost of living adjustments to remain relevant. States will still be free to set higher minimums.
- The central government funds some schemes like NREGA at a minimum of 100 rupees per day, which is less than levels set by some states. A revised central minimum could increase allocation amounts for these schemes.
- Consultations are underway on the proposed
The document discusses plans to enact a new central statutory minimum wage in India to address inconsistencies between state minimum wages. Key points:
- The Minimum Wages Act will be amended to set a central minimum wage that states must meet but can exceed. Currently, central minimum wages are only advisory.
- The new central minimum will be linked to cost of living adjustments to remain relevant. States will still be free to set higher minimums.
- The central government funds some schemes like NREGA at a minimum of 100 rupees per day, which is less than levels set by some states. A revised central minimum could increase allocation amounts for these schemes.
- Consultations are underway on the proposed
States may set it higher, not lower; planned link to cost of living SREELATHA MENON imum wages in many places. In New Delhi, 9 November Andhra Pradesh, the state gov- ernment even went to the high he Minimum Wages court, to press that the Centre
T Act will be amend-
ed to enact a new centrally set mini- mum, in the wake of the National Advisory Council’s suggestion on asymmetries in this regard between states on fund at its higher level, not `100. It even got a favourable order, but this has not been imple- mented; the case is still on. This anomaly will continue under the proposed change, with states free to pay more. payments for work done on However, with a more realistic schemes under the National central level, to be also more Rural Employment Guaran- flexible, the anomaly would be tee Act (NREGA). less. Also, there would be one The Union labour ministry central minimum, applicable has begun consultations on the PHOTO: REUTERS to all central schemes. proposed change and on mak- ing the set level mandatory for WITH A REVISED MINIMUM, THE ALLOCATION Labour ministry officials did say such an amendment would all state governments. The lat- for NREGA and other centrally-funded schemes would go also mean that states may need ter could set a higher level, but up. The allocation this year was `40,100 crore at `100 a day central permission to raise their not less. At present, the nation- minimum wages, but these de- al minimum wages are only ad- it flexible and sensitive to price states. For instance, Andhra has tails are yet to be settled. visory and states are free to ac- fluctuations. NREGA wage pay- `112, Karnataka has `133.80, In any case, with a revised cept or ignore these in setting ments are funded by the Centre, Punjab has `142, Mizoram has minimum, the allocation for their own minimum. What is sug- but it does so at the rate of `100 `132 and so on. NREGA and other centrally-fund- gested is that a new central statu- a day, which it hasn’t revised for In sum, there’s a situation ed schemes would go up. The al- tory minimum would be linked two years. This `100 level is less where NREGA payments are location this year was `40,100 to dearness allowance to make than the minimum set in various less than the state’s own min- crore at the `100 a day.