New Delhi: A government panel has recommended a national minimum wage of ₹9,750 per month, or ₹375 per day, plus an additional housing allowance of ₹1,430 per month for workers in cities.
The report was made public on Friday. If implemented, it will put in place a national floor price and states won't be able to pay less than that. However, they can pay more.
States currently decide on minimum wages after taking into account several factors, including the sector of work. A national floor price has been the demand for years from workers and workers unions.
“The committee is of the considered view that the single value of the national minimum wage for India should be set at ₹375 per day as of July 2018. This would be equivalent to ₹9,750 per month, irrespective of sectors, skills, occupations and rural-urban locations," according to the report.
Since house rent accounts for a significant proportion of the overall non-food component, the panel recommends an additional house rent allowance, averaging up to ₹55 per day, or ₹1,430 per month, for urban workers over and above the national minimum wage. “However, this city compensatory rent allowance may be allowed to vary in accordance with the type of city and town," the report said.
The committee said it had taken into account the changes in the population composition over time, and recommended increasing the previously established three consumption units per worker’s family to 3.6 consumption units in order to calculate the minimum wage.