Tuesday, March 20, 2012

Minimum Wages: PIB

Dear Comrades,


Minimum Wages
The Minimum Wages Act, 1948 is intended to primarily safeguard the interest of workers particularly in unorganised sector. While fixing the minimum wages for different employments covered in the Schedule, the norms recommended by Indian Labour Conference (ILC) 1957 and the judgement of Hon’ble Supreme Court delivered in the case of Reptakos& Co. Vs. its workers are kept in view.


There is large scale variation of minimum wages both within the country and internationally owing to differences in prices of essential commodities, paying capacity, productivity, local conditions, items of the commodity basket, differences in exchange rates etc.
In view of this it is not possible to compare the minimum wages in the country with International Standards.
The summary of the discussion held in the Labour Conference pertaining to minimum wages is at Annexure I.
The norms recommended by the Indian Labour Conference (ILC), held in 1957 are taken into accountwhile fixing the minimum wages. These are as follows:-
(i) 3 consumption units for one earner.
(ii) Minimum food requirements of 2700 calories per average Indian adult.
(iii) Clothing requirements of 72 yards per annum per family.
(iv) Rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme.
(v) Fuel, Lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage.
This information was given by Minister of Labour and Employment Shri Mallikarjun Kharge in reply in reply to a written question whether the minimum wage in the country is at par with international standards for offering a reasonably comfortable life in the current economic scenario; the recommendations of the Indian Labour Conference in this regard; and any proposal to adjust the wage on the basis of calorie intake of the workers family in the Lok Sabha today.
******
ST/-
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