Will industrial workers see an increase in wages? Here's what the Centre is planning 

With unrest in several industrial belts across the country as workers raised concerns over low minimum wages, the Union ministry of labour and employment is set to soon start work on fixing the floor wage under the new Labour Codes.

Sources pointed out that under the Code on Wages, 2019, the Central government must set a floor wage and minimum wages set up states cannot be lower than that.

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“Till now, the minimum wages set by the Centre work more as an advisory to states. Now with the notification of the Labour Codes, the Centre will soon set a floor wage, and states will have to follow it,” noted the source.  An expert committee is expected to be set up soon for arriving at the floor wage.

Section 9 read with Rule 11 of the Code on Wages, 2019 introduces floor wages as a statutory provision. “The baseline wages will be fixed by the Central government based on minimum living standards of an employee including food, clothing etc. It will be revised at regular intervals. State governments must ensure their minimum wages are not lower than this floor level,” an earlier statement by the labour ministry had explained.

At present, minimum wages vary across states and have not been revised by several states for many years.

Discontentment over low wages had been a key reason for workers going on strike and protesting in the unrest in the industrial belts around the National Capital Region. Following the unrest, states including Haryana and Uttar Pradesh have hiked the minimum wages.

The joint meeting of Central Trade Unions and the Sanyukt Kisan Morcha on April 24 took note that minimum wages have not been revised in many states for the last 10 years despite the price

rise in basic essentials. “In most industrial hubs, contract, casual, or fixed-term workers are migrant workers living in precarious conditions devoid of basic amenities,” it pointed out in a statement.