Centre to Introduce Minimum Wage Floor Within the Next 2-3 Months

Government Unlikely to Notify Floor Wage in Near Future

The central government is unlikely to notify a "floor wage" anytime soon, despite an internal assessment by the Union Labour Ministry of the level it should be set at. According to government sources, the Labour Ministry is considering setting the floor wage, a baseline minimum wage across states, for skilled workers at Rs 425 a day.

The assessment of floor wage is underway for unskilled workers, semi-skilled, and highly-skilled workers. However, the maximum limit is unlikely to exceed Rs 450 a day. In comparison, the current minimum wage paid by the central government to agriculture and non-agriculture workers ranges from Rs 206 to Rs 401 per day.

| Worker Category | Minimum Wage Range | | --- | --- | | Agriculture workers | Rs 206-401 per day | | Non-agriculture workers | Rs 206-401 per day |

The Central Advisory Board will be established once it's notified in the coming weeks, as per the provisions of the Code on Wages, 2019. The final notification of the new floor wage is likely to be published in the next two to three months, as per government sources.

The floor wage is a new concept introduced by Section 9 of the Code on Wages, 2019. It serves as a statutory baseline or reference point set by the central government, below which no state government can fix its minimum wages for workers. The floor wage will take into account the minimum living standards of workers, including factors such as food, clothing, and other essential needs. Once notified, the state governments must ensure that the minimum wages fixed by them are not lower than the notified floor wage.