An Insight into India’s Wage Policies

The government’s intent to strengthen the minimum wage policies through the “Codes on Wages”, 2019 is noteworthy, but it fails to uplift the lives of the workforce as desired. Through the analysis of various wage policies of India, we can point out two major drawbacks in our present policies. One, lack of coordination among State and Central Government and two, lack of rigour on enforcement. Resolving these issues is imperative for the workforce to reap the benefits of India’s growing economy. For efficient enforcement, structural reforms in each sector are necessary as it will help employers to adapt to the changes in minimum wage policies.

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Effects of Commencement of the Minimum Wages Act

By Mukul Sharma, KIIT Law School, KIIT University, Bhubaneswar.

Introduction

The concept of minimum wages first evolved with reference to remuneration of workers in those industries where the level of wages was substantially low as compared to the wages for similar types of labour in other industries. As far back as 1928, the International Labour Conference of International Labour Organization, at Geneva, adopted a draft convention on minimum wages requiring the member countries to create and maintain a machinery whereby minimum rates of wages can be fixed for workers employed in industries in which no arrangements exist for the effective regulation of wages and where wages are exceptionally low. Also, at the Preparatory Asian Regional Labour Conference of ILO held at New Delhi in 1947 and then at the 3rd session of the Asian Regional Labour conference, it was approved that every effort should be made to improve wage standards in industries and occupations in Asian countries, where they are still low. (more…)