The Central government has constituted an expert group to provide inputs and recommendations on the fixation of minimum wages and national floor minimum wage. This comes nearly two years after the clearance of the Labour Code on wages that gave legislative protection of minimum wages to all workers.
The expert group has been constituted by the Ministry of Labour & Employment, Government of India.
The minimum level of wage applicable to all categories of workers across the country is known as the national floor wage. The minimum wages can’t go below the national floor standard. The minimum wage is always different for different categories of workers.
According to the labour ministry, the expert group announced on Thursday will have a tenure of three years from the date of notification. The group will look into the international best practices on wages for fixing the wage rates. It will also evolve a scientific criterion and methodology for the fixation of wages.
The group is chaired by Ajit Mishra, Director, Institute of Economic Growth, Delhi. The members of the expert group include Prof Tarika Chakraborty, IIM Calcutta, Anushree Sinha, Senior Fellow, National Council of Applied Economic Research (NCAER), Vibha Bhalla, Joint Secretary, H Srinivas, Director General, VV Giri National Labour Institute (VVGNLI). DPS Negi, Senior Labour & Employment Advisor, Ministry of Labour & Employment is the Member Secretary of the expert group.
The committee which has been announced now is the second expert committee on minimum wages formed by the Modi government within the last four years.
On January 17, 2017, the government constituted a panel led by Anoop Satpathy, Fellow, VVGNLI. It was given the responsibility to provide evidence-based analysis to determine the methodology for fixing the national minimum wage. It submitted its report on February 14, 2019. However, its recommendations including setting the national floor wage at Rs 375 per day (Rs 9,750 per month) as per July 2018 prices, were rejected by the Centre.
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