Centre Revises Minimum Wages for Workers

Why in the news?

The central government has revised minimum wage rates for various skill levels and geographical areas, effective next month, ensuring fair wages across sectors and regions.

Wages Categorised by Skill Levels:

  • Minimum wages are classified into unskilled, semi-skilled, skilled, and highly skilled categories.
  • For unskilled workers in area ‘A’, such as those in construction and cleaning, wages will be ₹783 per day
  • Semi-skilled workers will earn ₹868 per day, while skilled and clerical workers will receive ₹954 per day.

Wages by Geographical Areas

  • The wages are further categorised into geographical areas A, B, and C.
  • In area ‘A’, highly skilled workers and security personnel with arms will receive ₹1,035 per day.
  • This revision aims to ensure fair compensation across skill levels and regions, boosting worker welfare.

Centre Revises Minimum Wages for Workers

Definition of Gig Economy:

  • The gig economy involves short-term contracts, freelance work, and temporary positions.
  • Workers perform tasks on a project basis rather than full-time employment.

Growth Scenario in India:

  • India is among the world’s largest flexi staffing markets, employing 7 million gig workers.
  • By 2029-30, gig workers are expected to rise to 5 million, 4% of India’s total workforce.
  • 31% of gig jobs are low-skilled, 47% are medium-skilled, and 22% are high-skilled.

Issues and Government Initiatives:

  • Gig workers lack social security and labour protections.
  • The Code on Social Security (2020) requires gig employers to contribute to a Social Security Fund.

The Code on Wages (2019) ensures minimum wages across sectors, including gig workers.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times