New Hope in relation to Minimum Wage Slab in India

The central government has recently introduced a new minimum wage bill in Parliament. The main purpose of this bill is to determine a specific slab of minimum wage.

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The economic front seems to be on the upswing. India's exports grew by 9.7 per cent. This is the lowest rate in the last 41 months. In terms of exports of goods, India has traditionally been at the forefront, while other countries seem to be at the forefront. Close rivals such as Bangladesh and Vietnam have overtaken India in the field of textile exports. In the first five months of 2019, Vietnam's exports grew at a record high of 6.7 percent.

Bangladesh has reached double-digit growth in textile exports in the last financial year. India's textile growth has almost stalled since 2014-15. This simply means that India is lagging behind the competition of smaller countries in terms of labor-intensive production. This situation is worrisome given the large number of women employed in developing countries such as the textile and textile industries.

The decline in exports and the industrial growth rate of only 3.1 per cent in May has eroded confidence in the 'Make in India' campaign. There is constant talk of increasing India's competitiveness in labor-intensive industries. Wages play an important role in the total production cost of companies in the textile and textile industries. In many of India's neighbors, workers are paid very meager wages. Also, the workplace environment is frightening. There are no facilities. Bangladesh has experienced a major catastrophe in the textile industry for flouting safety rules. In 2013, the Rana Plaza Garment Factory collapsed due to the same reason. A total of 1,134 poor women workers were killed in the accident.

Labor-intensive industries can be made more efficient by reducing the cost of many types of production. However, according to most neo-liberal economists, there is a need to bring Mujri under control. As soon as any discussion about the minimum national wage starts, they fly the red flag of direct opposition. The issue of minimum wage should be left entirely to the states. The central government should not interfere in it. Otherwise, it will affect employment growth. The concept of a minimum national wage binds
entrepreneurs. It limits the freedom of companies and owners. Is affecting their profits.

There are about 51 crore workers in India today. These workers should not be exploited. India should consider giving them the facilities and protection they deserve. Workers do not have the ability to fight for wages. Women workers in particular are more vulnerable. For them, a job is everything. If the job is gone, their reputation in the community goes. The question of survival arises before them. The national minimum wage protects such workers, especially women.

The 2019 Economic Survey Report has a detailed account of the minimum wage. It expresses the need to develop a very clear and easily implemented minimum wage plan with the help of technology. It also claimed that the implementation of the minimum wage scheme would not have much impact on employment, but would reduce economic inequality. An effective minimum wage policy is not only a great tool to protect low-wage workers, but also a comprehensive system of flexible and sustainable economic development.

Discussions have been going on for the last several years about what the minimum wage should be and how to decide it. The Ministry of Labor has set up a committee of experts for this. In July 2018, the committee has recommended an increase in the minimum wage by Rs 375 per day. The committee, comprising seven experts, has recommended a minimum salary of Rs 9,750 per month. At the same time, it has been suggested that city workers should get a minimum housing allowance of Rs 1,430 per month.

The minimum wage has been fixed on the basis that a worker works 26 days a month. No distinction is made in the area of ​​occupation, nature, skill, rural or urban in determining the minimum wage. It assumes that a working class family consumes 2700 calories of food per day, 72 garments per person, minimum house rent, education, electricity and fuel. This formula has been decided by the Indian Labor Council of 1957.

In July 2017, the central government increased the minimum wage by 10 per cent to Rs 176 per day. Of course, the central government's figure is not binding on the states. So the minimum wage is different in different states. For example, in West Bengal, Nagaland, Tripura and Tamil Nadu, workers are paid less than the minimum wage. However, taking into account the opinion of the industry as well as ignoring the recommendations of the experts and the economic survey report, the central government approved an increase in the minimum wage by only Rs 2 per month. This was a shock to the trade unions.

This is shocking even for the workers. Because, instead of the Rs 375 recommendation per day suggested by the committee of experts, they will have to accept the Centre's Rs 178. Thus, the central government has also chosen to ignore the recommendations of the Economic Survey and the executable minimum wage proposal suggested by the survey report.

The minimum wage scheme is expected to reduce the number of migrants, the report said. Because many states still do not pay the minimum wage fixed by the Ministry of Labor, there is a big difference in wages between states. This has led to an increase in migration.

The central government has recently introduced a new minimum wage bill in Parliament. The main purpose of this bill is to determine a specific slab of minimum wage. States cannot be paid less than that. The work of making minimum wage regulations is in progress. The new law will apply to workers in all sectors. However, the government seems to have succumbed to pressure from industry and neo-liberals in setting the minimum wage.