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Expert Committee on Determining Methodology for Fixing National Minimum Wage submits report

Expert Committee on Determining Methodology for Fixing National Minimum Wage submits report

A government-appointed expert committee has proposed doubling the national-level minimum wage for a worker in the country to Rs 9,750 a month, up from a floor of Rs 4,576 at present.

The committee has alternatively proposed a national minimum wage at various regional levels in the range of Rs 8,892-11,622 a month (depending on local factors) and suggested an additional house rent allowance for urban workers.

Dr. Anoop Satpathy Committee

The Ministry of Labour and Employment had constituted an expert committee on 17th January 2017, under the Chairmanship Dr. Anoop Satpathy to review and recommend methodology for fixation of National Minimum Wage (NMW).

On the basis of this approach, the committee is of the considered view that the single value of the NMW (National Minimum Wage) for India should be set at Rs 375 per day as of July 2018.

Considering a worker works for 26 days a month, the minimum monthly wage came to Rs 9,750.

This wage-level is irrespective of sectors, skills, occupations and rural-urban locations for a family comprising 3.6 consumption units, according to the report.

Over and above the minimum wage, it recommended an additional house rent allowance of Rs 55 per day, i.e. Rs 1,430 a month for urban workers.

Minimum Wage requirement in states

 

Region

State

Minimum Daily Wage

Minimum Wages (month)

Region 1

Assam, Bihar, Jharkhand, MP, Odisha, UP and West Bengal

Rs. 342

Rs. 8892

Region 2

Andhra Pradesh, Telangana, Chhattisgarh, Rajasthan, J&K and Uttrakhand

Rs. 380

Rs. 9880

Region 3

Gujarat, Karnataka, Kerala, Maharashtra, and Tamil Nadu

Rs. 414

Rs. 11622

Region 4

Delhi, Goa, Haryana and Punjab

Rs. 447

Rs. 11622

Region 5

Northeast States

Rs. 386

Rs. 10306

 What next?

This report is like a framework for the states to follow but it’s completely into their hands to decide what the minimum wage workers need is.

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