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And although the Central Government from time to time revises the Variable Dearness Allowance, which is an important component of the formula, these revisions also remain non-statutory.
The national minimum wage is meant to serve as a baseline. The central government periodically revises the variable dearness allowance, an important component of the minimum wage formula, but these amendments also remain non-statutory and do not guarantee uniform enforcement across states. In 2019, a committee led by Dr Anoop Satpathy recommended a minimum wage of ₹375 per day, a recommendation which was not accepted by the central government.
Minimum wages in India are decided by state governments. Rates vary widely across the country depending on the state’s development zone, industry, worker’s skill level, and type of business.
For example, in Uttar Pradesh, the minimum wage for an unskilled worker is ₹11,021 per month, while a skilled worker earns ₹13,580 per month.
In Maharashtra, an unskilled worker earns ₹13,635 per month in Zone 1, ₹13,039 per month in Zone 2 and ₹12,442 per month in Zone 3. A skilled worker earns ₹15,246 per month in Zone 1, ₹14,650 per month in Zone 2 and ₹14,054 per month in Zone 3.
In Andhra Pradesh, an unskilled worker earns ₹13,248 per month in Zone 1, ₹12,498 per month in Zone 2 and ₹12,248 per month in Zone 3. A skilled worker earns ₹15,248 per month in Zone 1, ₹14,248 per month in Zone 2 and ₹12,748 per month in Zone 3.
In Bihar, the minimum wage is ₹11,128 per month for an unskilled worker, ₹14,066 per month for a skilled worker, and ₹17,160 per month for a highly skilled worker.
In Jammu and Kashmir, an unskilled worker earns ₹8,086 per month, a skilled worker earns ₹12,558 per month and a highly skilled worker earns ₹14,352 per month.
In Delhi, an unskilled worker earns ₹18,456 per month, a semi-skilled worker earns ₹20,371 per month, a skilled worker earns ₹22,411 per month and a highly skilled worker earns ₹24,356 per month.
Labor unions have expressed concern over the lack of clarity in the new wage structure that the central government is planning to introduce. They fear that the minimum wage component may not be revised frequently to keep in mind inflation and changing economic conditions.
“The national floor wage is non-statutory, which means it is only recommendatory in nature, which is currently at a very low level,” Gautam Modi, general secretary of the New Trade Union Initiative, told CNBC TV18. 178 per day. With the floor wage being brought into law, we will have a statutory minimum wage and a statutory floor wage. This means that now our salary will be less than the minimum wage. Any wage below the minimum wage is considered forced labour, in which people are working at wages below subsistence level.”