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Labour reforms resulted in higher salaries in FY18: Finmin

The finance ministry on Friday said labour reforms have resulted in higher salaries for workers and that in 2017-18, 23 million employees moved from the category of casual worker to that of regular salaried.

Compared with 2011-12, FY18 also saw 5% of the country’s agricultural workforce moving to services and industry. This resulted in 2% of the country’s workforce moving from the unorganised to the organised sector.

The unorganised sector accounts for 83% of total workforce of total workforce of about 500 million.

In a presentation to the media, chief economic advisor Krishnamurthy Subramanian said the proportion of casual workers in the country has come down to 25% from 30% and that there is a corresponding increase in the regular salaried class—up from 18% in 2011-12 to 23% in 2017-18.
 

“Drop in casual labour is driven by rural workers with a shift towards salaried and self-employed workforce,” Subramanian said in his presentation which focussed on the steps taken by the government to pull the economy out from a sixyear low growth of 4.5% in the second quarter.