There is a potential move to raise the national minimum wage, with the central government considering recommendations from an expert panel, as reported by The Economic Times. The expected increase, proposed by the SP Mukherjee-led committee since 2021, might be implemented before the upcoming general elections in April-May.

The committee, operating until June 2024, is close to completing its report, according to sources. They mentioned, "The report is almost finalized, with the committee set to wrap up discussions after one final round of meetings."

Currently, with about 500 million workers, 90 percent of them in the unorganized sector, the existing floor wage is Rs.176 per day, last revised in 2017. This rate is not legally binding for states. Officials argue that an overdue revision is necessary to address the increasing cost of living and inflation.

If the proposed new minimum wage is implemented, it would be mandatory nationwide, authorized by the Code on Wages, 2019, granting the central government the power to establish the floor wage based on a worker's minimum living standards.

In 2019, a committee led by Anoop Satpathy suggested a floor wage of Rs.375 per day, a proposal rejected by the government due to significant financial implications for employers. Stakeholders are optimistic that the current committee will find a middle ground between the existing Rs.176 per day and the previous Rs.375 per day recommendation.

An employers' representative involved in the discussions stated, "The committee is expected to arrive at a balanced wage to minimize financial implications on employers, both central and state governments." The committee is likely to take into account inflation and household expenditure costs in determining the new floor wage, considering nutritional and non-food requirements.

According to the Code on Wages, 2019, the government has the authority to set different floor wages for various geographical areas. However, it prohibits reducing wages if the minimum rates set by the appropriate government exceed the existing floor wage. Currently, some states have set their daily wage floor lower than Rs.176, while others have a higher rate, leading to disparities in minimum wages and impacting the movement of migrant laborers within the country.

When is Parliament Budget Session Set to Take Place? Key Highlights and More