Eco Survey calls for simpler minimum wage system to boost inclusive growth

Supports Code on Wages Bill, approved by Cabinet on Wednesday, to rationalise minimum wages; calls present system complex, with 1,915 wages for various job categories across states

A simple and effective minimum wage system is an ‘urgent necessity’ for India’s inclusive growth, according to the Economic Survey of 2018-19.

“A well-designed minimum wage system can be a potent tool for protecting workers and alleviating poverty, if set at an appropriate level that ensures compliance. International experience has shown that relatively simple systems are more effective and usually complex systems are least effective,” the survey said.

The survey brought to light the gender discrimination through the present minimum wage legislations and how it had no adverse impact on job creation, and had instead led to a higher income