Question : Minimum Wages and National Floor Wages

(a)whether the Government had set up an expert committee to decide the rates of minimum wages and national floor wages;
(b)if so, the details thereof;
(c)whether the aforesaid committee has submitted its report to the Government;
(d)if so, the details of the recommendations made by the committee;
(e)if not, the time by which it is likely to submit its report; and
(f)the steps taken by the Government to look into international best practices on wages and evolve a scientific criteria and methodology for fixation of wage?

MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SHRI RAMESWAR TELI)

(a) & (b): Yes, Sir. The Government has constituted an Expert Group in April 2021 under the Chairmanship of Prof. Ajit Mishra, Director, Institute of Economic Growth, to provide technical inputs and recommend on fixation of Minimum Wages and National Floor Wages. The Expert Group consists of Six members from the field of research and Government. The Terms of Reference of the Expert Group is as follows:

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i. To look into the best international practices on the wages,
ii. To evolve the scientific criteria and methodology for fixation of wages,
iii. To determine and rationalize the wage rate and recommend to the Central Government the Minimum Wages and National Floor Wages, and
iv. Any other related matter which Expert Committee deems fit or assigned to the Expert Committee by the Government.

(c): The Expert Group has not yet submitted its Report to the Government.

(d): Does not arise in view of (c) above.

(e) & (f): So far, two meetings of the Expert Group have been held (14.06.2021 & 29.06.2021). In these meetings the Expert Group reviewed the present practice of fixation of Minimum Wages & National Floor Wages being followed in India and internationally.

A detailed presentation on ‘ Wages- A Global Perspective’ was made in the second meeting, wherein, different wages rate practices being followed in different regions around the world were discussed in detail. A comparative picture on minimum wages of different major countries was presented, with a special focus on BRICS countries.
The tenure of the Expert Group is three years. However, the Group is expected to submit its recommendations in phases.

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