In India, 422.6 (94%) million workers out of the total workforce of 457.5 million belong to the unorganised/informal sector. These workers contribute to more than 60 per cent to India’s GDP growth. Among other sectors, these workers work as farm labourers, landless labourers, factory workers and construction workers. Currently the number of scheduled employments in the Central government is 45, whereas in the state sphere the number is 1232.

The Minimum Wage Act, 1948 provides for fixation and enforcement of minimum wages in respect of schedule employments to prevent sweating or exploitation of labour through payment of low wages. The objective of the Act is to ensure a minimum subsistence wage for workers. The Act requires the appropriate government to fix minimum rates of wages in respect of employment specified in the schedule and review and revise the minimum rates of wages at intervals not exceeding five years. 

In September 2007, the national minimum floor level wage was increased to Rs 80 per day for all scheduled employments from Rs 66 in 2004 to Rs. 45 in 1999, Rs. 40 in 1998 and Rs. 35 in 1996.

ALSO SEE:

Fixation of Minimum Wages in India

Employers’ Checklist for Minimum Wages

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