Daily News Analysis

Ajit Mishra expert panel

5th June, 2021 Economy

GS PAPER III: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: Govt sets up expert panel to fix minimum pay, national floor wage

  • The group will look into the international best practices on the wages and evolve a scientific criteria and methodology for fixation of wage
  • It will provide technical inputs and recommendations on fixation of minimum wages and national floor for minimum wages.
  • This is the second expert committee on minimum wages formed by the government within the last two years.

Anoop Satpathy expert panel

  • It was set up to undertake an evidence-based analysis to determine methodology for fixing national minimum wage.
  • The recommendations, which weren’t accepted by the Centre, included setting the national floor wage at Rs 375 per day (Rs 9,750 per month) as per July 2018 prices.
  • Under the Code on Wages, which is yet to be enforced, a National Floor Level Minimum Wage will be set by the Centre to be revised every five years, while states will fix minimum wages for their regions, which cannot be lower than the floor wage.
  • The current floor wage, which was fixed in 2017, is at Rs 176 a day, but some states have minimum wages lower than it.