Government

 Set To Make Minimum Wages A Statutory Right For All Employees

Factory workers at an assembly in Chennai (Getty Images)

In yet another populist move, the code on wages that seeks making minimum wages a statutory right for all employees will probably soon receive the governmental nod.

According to a report in the Financial Express, the union cabinet may approve the code on Wednesday which will then be tabled in the monsoon session of Parliament. Aimed at ‘reducing disparity in minimum wages across states’, the code will provide for a “national minimum wage” which will be revised every two years. No state will be allowed to fix their minimum wages below it.

The code which integrates the provisions of the Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976 will be the first among the long pending labour reform initiatives of the present government.

It is definitely worth more than a thought why the largest democracy is still looking at measures that have been despised by most other developing countries. Ample studies have highlighted the negative impacts of higher minimum wages that include being a major roadblock to the formalisation of the economy, job losses among other. If only the law makers could look at why none of the arguments in favour of minimum wages holds much ground, it would go a long way in ridding the economy of the age-old evils of unemployment and informal employment.

Also read:

Why Minimum Wage Is Bad For The Poor As Well As The Economy

Labour Reforms With A Subsidy Smokescreen: A Case Of Signal Left Turn Right

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement