The government sought technical assistance from ILO to create a framework for living wage | Current Affairs | Vision IAS
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    The government sought technical assistance from ILO to create a framework for living wage

    Posted 05 Apr 2024

    2 min read

    • Presently, India follows the minimum wage, which has remained stagnant since 2017.
    • The Code on Wages passed (2019), proposed a universal wage floor which shall apply to all states once implemented.

     

    • Issues with the present system
      • The Minimum Wages Act, 1948 provides guidelines but does not specify the minimum wage.
      • Fixing minimum wages in some jobs falls under both the Minimum Wages Act, 1948, and the Contract Labour (Regulation and Abolition) Act, 1970, leading to potential confusion.
      • Wage payment discrepancies due to the lack of enforceability of the national wage floor across states.
      • Gender disparity as scheduled employment with more women workers has lower minimum wages than those with more men.

     

    • Difference between living wage and minimum wage
    Differential AspectsLiving WageMinimum Wage
    DefinitionThe wage level necessary to afford a decent standard of living for workers and their families.The lowest legal hourly wage that employers must pay their workers.
    AimTo improve workers' quality of life To protect workers from exploitation.

     

    • Advantages of Living Wage:
      • Accelerate Poverty alleviation efforts, aligning with Sustainable Development Goals (SDGs). 
      • Addresses wage insufficiency, especially considering inflation, and fosters a more equitable and sustainable economy.

     

    • Challenges of Living Wage:
      • Implementing a national living wage framework across states due to the diversity of living costs in different regions of India. 
      • Financial strain especially for small businesses and MSMEs, due to increased labour costs.
    • Tags :
    • Living Wages
    • Minimum wage
    • Minimum Wages Act
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