Uniform Methodology for Devising Statutory Minimum Wage: Lok Sabha QA

Uniform Methodology for Devising Statutory Minimum Wage – Government shall review or revise minimum rates of wages ordinarily at an interval not exceeding five years: Lok Sabha QA

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA

UNSTARRED QUESTION NO. 61
TO BE ANSWERED ON 04.12.2023

UNIFORM METHODOLOGY FOR DEVISING STATUTORY MINIMUM WAGE

61. DR. BEESETTI VENKATA SATYAVATHI:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

(a) whether the Government has undertaken any measures to set out a clear uniform methodology for devising statutory minimum wage for (i) the national floor level and (ii) for different States;

(b) if so, the details thereof and if not, the reasons therefor;

(c) whether the Government has any plan to change the duration of five years for revision/review of minimum wages;

(d) if so, the details thereof and if not, the reasons therefor;

(e) whether the Government has evolved any mechanism for monitoring of compliance with minimum wage rates, such as strengthening the role of Trade Unions in the inspection process, considering widespread flouting of the rates; and

(f) if so, the details thereof and if not, the reasons therefor?

ANSWER

MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

(a) to (f): The Section 3(1) (b) of the Minimum Wages Act, 1948, mandates the Central Government and the State Governments to review the minimum rates of wages so fixed in the scheduled employments in their respective jurisdiction at intervals not exceeding five years and revise the minimum rates, if necessary. Recently, the provisions of the Minimum Wages Act, 1948, have been rationalized and amalgamated in the Code on Wages Act, 2019, passed by the Parliament and notified on 08.08.2019. Section 8(4) of the Code stipulates that the appropriate Government shall review or revise minimum rates of wages ordinarily at an interval not exceeding five years.

Government have taken measures for monitoring of compliance in respect of minimum wages rate, such as publicity of minimum rates of wages in the Chief Labour Commissioner (CLC) websites, display of minimum rates of wages by contractors at work sites/places, display of minimum rates of wages by principal employers in their websites.

Besides above, regular inspections are conducted in the establishments under central sphere under Minimum Wages Act, 1948 by the organizations of Central Industrial Relations Machinery (CIRM) under the CLC(C). Special emphasis is given to the complaints received against any establishment. On finding any less payment of wages to workers, claim application is filed before the authority appointed to hear and decide the claim. As per the provision of Section 20(2) of the Act, such claim can also be filed by the employee himself, or any legal practitioner or any official of registered trade union on behalf of the worker/s.

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