According to a report, India is contemplating replacing the current minimum wage with a living wage by the next year (2025) after the government asked the International Labour Organization (ILO) for technical assistance in developing a framework to estimate and operationalize it. The ILO approved the idea earlier this month after settling on a minimum salary that is in line with the living wage. The accord was approved by the ILO’s governing body on March 13, following discussions at a Meeting of Experts on Wage Policies in February. Furthermore, the Economic Times was informed by a top government official that “we could go beyond minimum wages in a year.”
The Living Wage Defined
A living wage is defined as one that is “necessary to afford a decent standard of living for workers and their families, taking into account the country’s circumstances and calculated for the work performed during the normal hours of work,” according to the International Labour Organization.
The international organization’s guidelines for measuring the living wage are used to compute the living wage income.
The livable wage allows the earner to give himself and his family a certain amount of economic comfort, such as children’s education and health protection, in addition to necessities like food, clothing, and housing.
India’s Sustainable Development Goals
Ninety percent of the more than 500 million workers in India are employed in the unorganized sector. Depending on the state in which they work, many of them make ₹176 or more per day as the minimum wage.
However, the national wage floor, which has remained unchanged since 2017, is unenforceable in different states. As a result, there are disparities in wage distributions.
India joined the ILO as a founding member. Furthermore, it has been an active member of its governing body ever since 1922. The 2019 Code on Wages has not yet been put into effect. It has suggested a universal wage floor that, if put into effect, would cover all states. Moreover, by 2030, India aims to accomplish the Sustainable Development Goals (SDGs).
According to officials, replacing the minimum wage with a livable wage would allow the nation to expedite its efforts to lift millions of people out of poverty while also maintaining their standard of living.
A spokesperson stated that the ILO is being asked to assist with “building capacity, systemic data collection, and evidence of the positive economic outcomes resulting from the implementation of living wages.”
Follow Us:
Youtube | Google News |
Igniteds is on YouTube; click here to subscribe for the latest videos and updates.
