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New Delhi: New Delhi has sought technical assistance from the International Labour Organisation (ILO) to develop a framework for estimating and implementing the living wage in place of the minimum wage system by 2025.
Officials have reached out to the ILO for support in various facets, including capacity building, data collection, and elucidating the positive economic ramifications of transitioning to a living wage model. The living wage is the wage level required to afford a decent standard of living for workers and their families, considering the country's circumstances, and calculated for the work performed during normal hours.
This initiative gained traction following the ILO's recent endorsement of the concept of a living wage, which encompasses an income sufficient to cover fundamental necessities such as housing, food, healthcare, education, and clothing. The endorsement came during a meeting of experts on wage policies in February and was subsequently ratified by the ILO's governing body on March 13.
The rationale behind the shift from minimum wages to living wages to expedite poverty alleviation efforts, particularly in a country like India, where over 500 million workers, constituting 90% of the labor force, operate within the unorganized sector.
Despite the fact that many workers currently earn a daily minimum wage of Rs 176 or more, the national wage floor has stagnated since 2017, exacerbated by disparities in enforcement across different states, resulting in irregularities in wage disbursements.
As of June 1, 2023, the minimum daily wages in Assam are, Rs 542.15 for skilled/clerical, Rs 433.72 for semi-skilled/unskilled supervisory, and Rs 371.76 for unskilled. As of November 2023, the average daily wage for a non-agricultural mason in Assam is Rs 516.270.
As a founding member of the ILO and a permanent fixture in its governing body since 1922, India has advocated for labor rights and welfare.
It has passed the Code on Wages in 2019. According to the report, this code proposes a universal wage floor that will apply to all states once implemented.
In addition to seeking technical support, India aims to demonstrate the economic benefits of embracing living wages as part of broader developmental objectives, including the Sustainable Development Goals (SDGs) set for attainment by 2030. With a robust economic growth trajectory, boasting a rate of 8.4 percent, India is trying to implement higher wage standards.
