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Need for Minimum Wage


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In January 2019, the “Expert Committee on Determining the Methodology for Fixing the National Minimum Wages” chaired by Anoop K Satpathy (henceforth the Satpathy Committee) recommended a minimum wage for the labourers in India. Using the consumption expenditure and employment data, the committee suggested `375 per day and a monthly wage of `9,750 as a national floor-level minimum wage, with certain variations based on region. This allows workers to have a balanced diet, and meet the
expenditure of other essential non-food consumption. However, the recommendations made by the committee did not receive the deserved attention of the government. Against the recommendation of the Satpathy Committee, the central government, in that particular year, claimed to hike the minimum wage rate by a meagre `2 from `176 to `178. In addition, the government has formed yet another committee on 3 June 2021, chaired by Ajit Mishra “to provide technical inputs and recommendations ....

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