Punjab drops hike in minimum wage, says situation 'not appropriate'

The Punjab government had hiked the dearness allowance component of the minimum wage by over four per cent on May 1

Punjab has become the first state to reverse an order announcing a hike in minimum wages of workers, in a bid to help companies overcome the economic crisis caused by the Covid-19 outbreak.

“It has been observed that in view of the emergent economic situation arising out of Covid-19, it may not be appropriate at this stage to raise the minimum wages in the state. The letter as issued on May 1, 2020 stands withdrawn with immediate effect and further decision is kept in abeyance,” said an order issued by the Punjab labour department on May 9.

The Punjab government had increased