 "Labour ministry looking to replace 'minimum wage' by 'living wage': Report")
In a bid to pull people out of poverty, the labour ministry is considering a shift from the minimum wage to a living wage, a report in the Economic Times (ET) said. The move may play a significant role in helping India meet its Sustainable Development Goal to eliminate extreme poverty by 2030.
"Initial discussions have begun within the labour ministry. India could seek help from the International Labour Organisation (ILO) to arrive at living wages if the idea gets a political backing," a senior government official told ET on the condition of anonymity.
The ministry has asked officials to weigh the pros and cons of such a step. They have also been asked to look at its economic, social and financial implications.
A minimum wage is the amount required for subsistence and is set by law. The living wage, on the other hand, is necessary for workers to meet their basic living requirements. The difference between the two may range from 10 to 25 per cent.
The members of the ILO have also reportedly requested the United Nations to help them with a better understanding of living wages by undertaking peer-reviewed research. India is a founding member of ILO.
In India, the minimum wage has been fixed at Rs 178 per day.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%