Last month, the Centre had revised National Floor Level Minimum Wage (NFLMU) upwards from Rs 137 to Rs 160 per day with effect from July 1, 2015.

Ministry has not worked out the quantum of increase in the minimum wages as the proposal is still at a discussion stage

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The government is working on a proposal to raise minimum wages of workers, a top Labour Ministry official on Tuesday said. “The discussion is on in the ministry to increase minimum wages. Ultimately, we want to have a level of wages which is in conformity with the parameterise suggested by the 2nd Labour Commission, Indian Labour Conference and erstwhile Planning Commission,” Labour Secretary Shankar Aggarwal said. However, Aggarwal said that the ministry has not worked out the quantum of increase in the minimum wages as the proposal is still at a discussion stage.<!– Dna_Article_Middle_300x250_BTF –>Last month, the Centre had revised National Floor Level Minimum Wage (NFLMU) upwards from Rs 137 to Rs 160 per day with effect from July 1, 2015. In order to have a uniform wage structure and to reduce the disparity in minimum wages across the country, National Floor Level Minimum Wage (NFLMU) is fixed and also requires to be revised from time to time on the basis of rise in Consumer Price Index for Industrial Workers (CPI-IW). The NFLMU was last revised from Rs 115 to Rs 137 per day with effect from July 1, 2013.The states also fix minimum wages to be paid by them to various categories of workers include unskilled, semi-skilled and skilled workers from time to time. According to the Suresh Tendulkar methodology, the all-India poverty line in terms of consumption expenditure would amount to about Rs4,080 per month in villages and Rs5,000 per month in cities in 2011-12. Which means that this is the bare minimum which was required for family of five in 2011-12, to meet certain basic needs like calorie intake, health, and education among others.The erstwhile Planning Commission has been following this methodology which factors in calorie intake, spending on education and health required for fixing a poverty line. The Second National Labour Commission also said that there shall not be any linkage of wage with productivity as production and productivity are the results of many inputs like machines, capital, raw materials, land and others, of which labour is only one. “Productivity is not merely labour productivity. So the commission shall recommend that no minimum wage to be linked with productivity and beyond minimum wages productivity shall be a subject for negotiation with Unions.” The 46th Indian Labour Conference held last month has recommended that wages definition should be uniform for all labour laws.

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Govt working on proposal to raise minimum wages