Labour ministry forms panel to look afresh at minimum wage fixation formula

The Ministry of Labor has formed a committee to review Thursday the new minimum wage fixing formula taking into account the cost of maintaining a minimum standard of living and also the average family size.

The Central Advisory Council under the Minimum Wage Act held a meeting in New Delhi chaired by Bandaru Dattatreya, Minister of Labor.

The plaque includes members designated by the central government representing employers and employees, industry members and trade unions.

After the meeting, Dattatreya said: “Taking into account all the considerations we have decided to form the committee that will review the fixing of minimum wages.

Entrepreneurs do not oppose it, since it is necessary to have a minimum standard of living today. “The Central Advisory Council, which advises on strategic guidelines on the minimum wage, has not met for about 7 years.

At today’s meeting, we talked about the implementation of the minimum wage application in several States, areas that require refinement and how the calculation of the minimum wage can be simplified, “said Labor Secretary M Sathiyavathy after the meeting.

There are several states that have not even made their respective state advisory councils to fix minimum wages, he said.

Minimum wages vary from state to state, for example, in New Delhi, the state government recently decided to advance the minimum wage for unskilled workers to Rs 13,350 per month versus Rs 9724 months earlier.

By semi-expert and competent, they increased by Rs 10,764 to Rs 14,698 and Rs 11,830 to 16,182 Rs per month, respectively.

The Secretary of Labor said that the Center can advise States on the fixing of minimum wages so that the burden of decision making is the sole responsibility of its advisory councils.

“At the moment, there is no mandatory minimum wage we can give. Some states have set a minimum wage that is lower than what we have suggested.

We can not have a consultation setting from the minimum level to the ground level, but some states even give less than that, “he added.

The formula based on three units to fix minimum wages currently has only four members of a family: husband, wife and two children.

There are no provisions for counting dependent parents, if necessary, or even if there are more than two children. The formula for three units gives the husband a complete unit, a unit of 0.8 units and 0.6 units for each of the two children.

On the basis of the formula of three units, the minimum wage is calculated taking into account the needs calorific value of 2,700 each, some of the weaving requirements of rental housing, education and medical expenses, etc.

“Now the unions say that the three-unit system is not enough to determine the minimum wage because the children continue to stay with the family for longer periods.

Unions say children and women should receive unity, “said Sathiyavathy.

After the Supreme Court’s decision in 2010 that children must be picked up by the children, the other two units must be added and the formula is based on the formulas of six units of three.

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