Indian wage disparities - a matter worry for ILO
India's state governments often set their minimum wages lower than the recommended national minimum wage, decided by the Union labour ministry, a report by the International Labour Organisation has said. It has added that the minimum wages often show large inter-state variations, unrelated to the cost of living, for the same kind of job. This is because the Minimum Wages Act of 1948 does not say on what basis the minimum wages should be fixed or revised.
The India Wage Report, released last month by the UN body, has highlighted what it considers flaws in the way minimum wages are determined in India. It has recommended that wage revisions be linked to the cost of living, GDP growth and rise in labour productivity. Santosh Mehrotra, chairperson of JNU's Centre for Informal Sector and Labour Studies, said that any rise in labour productivity --- the workers' output in propelling growth --- should be rewarded adequately with a rise in wages.