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Minimum Wages India – Current Minimum Wage Rate India

Legislative protection for workers to receive a minimum wage, can be considered as the hall mark of any progressive nation. It is one of the fundamental premises of decent work. In India, the Minimum Wages Act, 1948 provides for fixation and enforcement of minimum wages in respect of scheduled employments.

The Act aims to prevent sweating or exploitation of labour1( According to the NSSO (2004-05) 61st round, around 395 million workers (86%) out of the total workforce of around 457 million workers constitute the unorganized/informal sector. In fact 7% of those employed in organized sector has been identified as informal workers raising the toll of informal sector to 422 million (92%). )through payment of low wages by ensuring a minimum subsistence wage for workers. The Act also requires the appropriate government (both at Centre and States) to fix minimum rates of wages in respect of employments specified in the schedule and also review and revise the same at intervals not exceeding five years.

Currently, the number of scheduled employments in the Central sphere is 45 whereas in the States sphere the number is 1596 (when all states are counted). With effect from November 2009, the National Floor Level of Minimum Wage has been increased to Rs 100 per day from Rs 80 per day (which was in effect since 2007). Recently with effect from April 1, 2011 the National Floor Level of Minimum Wage has been raised to Rs 115 per day.

Since the respective state governments have been empowered to independently fix minimum wages, disparities between wages in neighboring states are common. In order to reduce this problem and bring comparability the Central government has set up 5 regional committees (table below)2 for harmonization of minimum wages.