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Government may raise minimum daily wages in the country by up to 25%


  • The government may raise the minimum wages in the country by as much as 25% and also make them binding on all states, a move aimed at improving the lifestyle of the poor and giving an indirect boost to the rural economy.
  • A senior government official said that the labour ministry is considering three groups for states and union territories based on the per capita income and minimum wages for the unskilled, semi-skilled and skilled category of workers in each of the provinces.
  • The Centre hopes revising the wage rate will help the government, as the step will give room to cut expenditure on social sector programmes and generate demand in the economy.
  • Minimum daily wages vary widely from state to state.
  • A back of the envelope calculation suggest that states like Goa, Delhi, Sikkim, Chandigarh, Pondicherry and Maharashtra, with highest per capita income in the country, would be the first category where minimum wage for the unskilled would be in the range of Rs 8,000 – Rs 9,000.

Source: ET

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