Govt sets up Expert group on Fixation of Minimum wages

Labour and Employment Ministry set up expert group that will provide technical inputs and recommendations on fixation of minimum wages and national floor for minimum wages.

Key Points

  • This is the second expert committee on minimum wages formed by government in last two years.
  • Last panel was headed by Anoop Satpathy and was set up by ministry on January 17, 2018. It conducted an evidence-based analysis to determine methodology of fixing national minimum wage. It recommended to set national floor wave at RS 375 per day or RS 9,750 per month in accordance with 2018 prices. However, recommendations were not accepted.

About Expert Group on fixation of minimum wages

Expert group has been set for a period of three years. It is chaired by Ajit Mishra who is Director of Institute of Economic Growth. Other members include- Tarika Chakraborty from IIM Calcutta; Anushree Sinha; Vibha Bhalla, Joint Secretary; et-al.

Task of expert group

Expert group will look after International best practices on wages to arrive at any wage rate. They will evolve a scientific criteria and methodology to fix wages.

What does Code on Wages specify?

The Code on Wages, which has not been enforced, provides for setting up of National Floor Level Minimum Wage by Centre which is to be revised every five years. On the other hand, states will fix minimum wages for their regions, that cannot be lower than floor wage. Current floor wage is at Rs 176 per day.

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