GOVERNMENT OF INDIA
MINISTRY OF LABOR AND EMPLOYMENT
RAJYA SABHA
UNSTARRED QUESTION #890
WE REPLY 02/09/2023
MINIMUM WAGES REVISION
890. SHRI R. GIRIRAJAN:
The Minister of Labor and Employment will be pleased to state:
a) whether considering the fact that the last revision was carried out more than 5 years ago in 2017 the government has some plans to revise the minimum wage all sections of workers throughout the country, their details; and
b) the formula used by the government to account for rising inflation salary revision calculation, its details?
REPLY
MINISTER OF STATE FOR LABOR AND EMPLOYMENT
(SHRI RAMESWAR TELI)
a) and b): Section 3 paragraph 1 letter b) of the Minimum Wages Act of 1948 is ordered by the central Government and State Governments to review the minimum wage rates so laid down in the Scheduled Jobs in their respective jurisdiction at intervals not longer than five years and adjust the minimum rates if necessary. Minimum the wage scales in the schedule of employment in the central sphere were revised in 2017. Furthermore, to take care of rising inflation, Central The Government is revising the Variable Debt Allowance (V.D.A) on base rates minimum wages every six months with effect from April 1 and October 1 each year. V.D.A. was last revised w.e.f. 01/10/2021. The central government is revising basic minimum wage rates and a variable poverty contribution to them taking into account the Consumer Price Index for industrial workers. Declaration showing an increase in wage rates since the 2017 revision due to increase in V.D.A payable to employees involved in the planned employment in the central sphere is in the appendix. The government is not only committed to regular review and revision minimum wages, but also to expand its coverage across employment and provide a minimum wage. Minimum wage provisions Act of 1948 were rationalized and consolidated in the Wages Act, 2019, as approved by Parliament and announced on 08/08/2019. Code on Wages, 2019 provides for universal minimum wage and minimum wage across employment in organized and unorganized sector and existing measures, under the Minimum Wages Act, 1948 to limit the applicability of the minimum wage Planned jobs were exempted under the code. Code empowers the Central Government to fix a minimum wage applicable throughout the headquarters and the state sphere. The Code stipulates that minimum wage rates are fixed shall not be less than the minimum wage by the competent government. said provisions of the 2019 Wage Code did not take effect.
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