India's National Minimum Wage Rate Remains Unchanged for Eight Years

Strategic Insights -

India's national minimum wage rate has not been revised in eight years, leaving millions of workers vulnerable to poverty. The National Floor Level Minimum Wage (NFLMW), a non-binding measure, has remained unchanged since 2017, despite the need for its revision to account for the rise in the consumer price index for industrial workers. This lack of update has significant implications for workers across the country, who are in dire need of a living wage to afford basic necessities and maintain a decent standard of living.

Key Takeaways:

  • The National Minimum Wage has not been updated in eight years, with the last revision occurring in 2017.
  • The National Floor Level Minimum Wage (NFLMW) has remained unchanged since 2017, despite the need for its revision.
  • Minimum wages vary across states, sectors, and skill levels, with no single national rate in force.
  • Living wages are often higher than minimum wages and are not legally mandated.
  • The International Labour Organization (ILO) has endorsed the concept of living wages.
  • The 15th Indian Labour Conference (ILC) recommended norms for fixing minimum wages in 1957, which have been updated over time.
  • The apex court's judgment in the Workmen v Reptakos Brett & Co. case in 1992 expanded on the 15th ILC norms, stating that the minimum wage must include 25% to cover vital social needs.

Statistics:

  • The National Minimum Wage has not been revised in eight years.
  • The National Floor Level Minimum Wage (NFLMW) has remained unchanged since 2017.
  • The minimum wage in Delhi is 17,494 for unskilled workers (effective since October 2023).
  • The minimum wage in Nagaland is 5,280 for unskilled workers (effective since June 14, 2019).
  • The minimum wage in Arunachal Pradesh is 6,600 for unskilled workers (since April 2023).
  • The minimum wage in Rajasthan is 6,734 for unskilled workers (since July 2021).
  • The minimum wage in Delhi is 710 per day for an unskilled worker.
  • The minimum wage in Bihar is 428 per day for an unskilled worker.

Sources:

  • The Economic Times: "National minimum wage rate remains unchanged for 8 years"
  • Simpliance: Minimum Wages in India
  • International Labour Organization (ILO): Living Wage Report 2024
  • Indian Labour Conference (ILC): 15th ILC Recommendations for Fixing Minimum Wages (1957)
  • Supreme Court of India: Workmen v Reptakos Brett & Co. case (1992)