With 15 states failing to ensure that workers get even the minimum stipulated wage, the government is now planning to amend laws to make it mandatory across the country apart from linking salary hikes to inflation rate and enhancing penalties for non-compliance.
The Centre has sought the views of states before finalising a cabinet note on amendment to the Minimum Wages Act.
As labour comes under the concurrent list, it is not mandatory for states to implement the national floor level minimum wage (NFLMW) set by centre. Though most states are offering wages much higher than the NFLMW of R115 per day, an official said as many as 15 states and union territories have wages in some sectors that is less than even the minimum level.
At present, the wages offered to unskilled workers in states like Assam, Jammu & Kashmir, Meghalaya, Nagaland, Orissa and Tripura are lower than R115 per day.
The government has revised the minimum wage floor successively from R35 per day in 1996 to R115 in 2011 to compensate workers for inflation.
Even within a state, wages offered to unskilled workers vary a lot ? R69.00- R231.71 per day in Andhra Pradesh, R85.20- R353 in Kerala, R88.29-R222.35 in Tamil Nadu, R100.00- R248.15 in Maharashtra and R98.67- R200.77 in Uttaranchal, which indicates that workers in some sectors in these states are still not ensured the NFLMW.
?The proposal is to make it statutory,? the labour ministry official said. This will be possible through an amendment in the Minimum Wages Act, which is to be taken up by cabinet once states send their feedbacks, he said.
?Moreover, the variable dearness allowance (VDA) introduced by the government in 1989 to protect wages against inflation have not been implemented by 11 states and union territories including north-eastern states, Himachal Pradesh, Jammu & Kashmir, Puducherry and Goa,? the official said.
The centre plans to link the VDA with the inflation rate measured in terms of consumer price index for industrial workers, he added.
Some states like Jharkhand has expressed reservation in frequent hike in minimum wages as it would put poorer states into a disadvantageous position and adversely affect the financial health. But labour ministry officials refused to buy this argument.
The bill to amend the Minimum Wages Act also proposes raising the penal provision to imprisonment up to 6 months or fine up to R5,000 or both for first contravention and imprisonment up to one year and fine up to R10,000 on subsequent contraventions for flouting the law, the labour ministry official said.
