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Central issues guidelines for setting up Regional Minimum Wage Advisory Committees
New Delhi: August 16, 2004

Lok Sabha

The Central Government has issued guidelines for setting up Regional Minimum Wage Advisory Committees in order to minimize the disparity in minimum wages in various regions of the country. These committees have made a number of recommendations including consultation with neighbouring states while fixing and revising minimum wages. This was stated by the Labour & Employment Minister Shri Sis Ram Ola in a written reply in the Lok Sabha today. He said the disparity in rates of minimum wages in different areas of the country is due to differences in socio-economic and agro-climatic conditions, prices of essential commodities, paying capacity, productivity and local conditions influencing the wage rate. Shri Ola said taking these factors in to account, the state governments as the appropriate governments, fix minimum wages in scheduled employments in these respective jurisdictions under the Minimum Wages Act, 1948, differently.

The Labour Minister said that in order to bring uniformity in minimum wages, the Central Government has mooted the concept of a national floor level minimum wage and fixed it. Though not mandatory, the appropriate Governments are persuaded to ensure that the minimum wage in their scheduled employments is not fixed below the national floor level minimum wage.

Press Release: PIB
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