International Labor Organization had introduced the concept of living wage instead of minimum wage. This was agreed upon in February this year. Minimum wage system is currently implemented in India. Because of this, the government has sought the help of ILO in implementing the living wage.
Living Wage may be implemented in the country next year instead of Minimum Wage . The government has sought technical help from the International Labor Organization ( ILO ) in this regard. A framework will be needed to estimate and implement the living wage. Earlier this month, ILO introduced the concept of living wage. Earlier, an agreement was reached to implement living wage instead of minimum wage. This consensus was reached in February, when a meeting of experts on wage policies was held. The Governing Body of ILO had approved this in its session on 13 March. A senior officer told the Economic Times that the minimum wage system will change within a year.
About 50 crore people working in India
There are more than 50 crore workers in India. Of these, 90 percent are in the unorganized sector. Many of them get daily wages of Rs 176 or more. This amount depends on which state the person is in. There has been no change in the minimum limit of National Wage since 2017. Different minimum wages are applicable in different states. India is a permanent member of the Governing Body of the ILO since 1922. It is also a founding member of ILO.
The new wage law is not yet implemented
The government had passed a new wage law in 2019. But, it has not been implemented yet. There is a provision of uniform wages, which will be applicable simultaneously in all the states. India is committed to achieving the Sustainable Development Goals (SDGs) by 20230. It is said that implementing the system of living wages instead of minimum wages will help in bringing crores of people out of poverty. Besides, people’s life style will also improve.
ILO will help India
An official said that ILO’s help has been sought in implementing the Living Wage. He will assist the government in capacity building, systematic collection of data to implement the new system and its positive economic outcomes.
What is the meaning of minimum wage?
Minimum wage means the minimum amount that an employer gives to an employee in return for work. This is for a fixed period of work. It cannot be changed through individual contract or collective agreement. The purpose of minimum wage is that a person should not be paid less than a limit for any work. Different methods are used to calculate minimum wage and living wage.
What is living wage?
According to the International Labor Organization, living wage is a payment made in exchange for any work, in which the good life-style of the workers and their families is taken care of. In determining this, the conditions of the country are taken into account. It is calculated on the basis of normal working hours. In this, needs like food, clothing and shelter are taken care of. Also, measures like child education and health protection are included.
