Government Forms Expert Group To Provide Recommendations On Fixation Of Minimum Wages

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The government has constituted an expert group to provide technical inputs and recommendations on fixation of minimum wages in the country as well as the national floor minimum wage for a period of three years.

“The expert group will give recommendations to the government on minimum wages and national floor wage. To arrive at the wage rates, the group will look into the international best practices on the wages and evolve a scientific criteria and methodology for fixation of wages,” the labour ministry said on Thursday.

The expert group will be chaired by professor Ajit Mishra, director, Institute of Economic Growth and will have five members including DPS Negi of the labour ministry as member secretary of the group.

The other members of the group include professor Tarika Chakraborty of IIM Calcutta, Anushree Sinha, senior fellow, NCAER, Vibha Bhalla, joint secretary and H Srinivas, director general of the VV Giri National Labour Institute.

The Code on Wages prescribes for a statutory floor-level minimum wage for the country. The government is hoping to roll out the Codes once some states are ready with Rules in their domain and hence have notified the expert group to ensure work on determining the minimum floor wage starts at the earliest.

No state can set their minimum wage below the national floor-level minimum wage. The current floor wage is only advisory, resulting in some states keeping minimum wages less than the floor wage, which is pegged at Rs 176 per day.

The labour ministry, had in March this year, notified rules governing the constitution and functions of the central advisory board under the Code on Wages.

The central advisory board will fix the minimum wage, based on the recommendations of the expert group and revise it from time to time while addressing other connected matters.

It will also be responsible for providing enhanced employment opportunities for women, determining the extent to which women may be employed in such establishments and any other matter relating to this Code.

The board, to be headed by the labour minister, will comprise government officials as members, representatives of employers and employees, independent persons not exceeding one-third of the total members and five representatives of state governments as may be nominated by the central government.

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