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No delay in fixing floor wages: Labour ministry
The fixing of the new wage benchmarks is mandated by the Code on Wages Bill passed in 2019. On June 3
The Union labour ministry on Saturday said it would fix minimum wages and national floor wages as soon as an expert committee, formed to decide the rates, gives its recommendations, adding there would be no “delay” in the exercise.
The fixing of the new wage benchmarks is mandated by the Code on Wages Bill passed in 2019. On June 3, the Centre announced a six-member expert committee of economists and bureaucrats to recommend the wage ceilings, but it had not stipulated a timeframe by which the panel has to submit its report.
“The tenure of the expert group has been kept as three years so that even after the fixation of minimum wages and national floor wages, (the) government may seek technical inputs/advice from the expert group,” an official statement from the ministry said.
According to the Periodic Labour Force Survey 2017-18, 45% of regular workers even in the formal sector receive less than the current minimum wages. The expert group is led by economist Ajit Mishra and is mandated to provide technical inputs and recommendations on fixation of wages to the labour ministry.
While there would be different minimum wages for different categories of jobs and these will vary according to geographical zones, there will be national floor wages for each category and no zone can have a wage below this level, according to the wage code 2019.
The group had held its first meeting on June 14. A second meeting is scheduled for June 29. The panel’s mandate is also to look into “international best practices on wages and evolve a scientific criteria and methodology for fixation of wage”.
