Breaking News

You are here » Indian-Commodity  :  Economy  :  India needs to improve wage policies to promote inclusive growth: ILO


India needs to improve wage policies to promote inclusive growth: ILO

In order to promote inclusive growth in India, the International Labour Organisation (ILO) in its latest report title 'India Wage Report: Wage policies for decent work and inclusive growth' has stated that the country needs to improve its wage policies. Though, it also said that low pay, gender wage gap and informality remain a serious challenge to India's path to achieving decent working conditions and inclusive growth.

The report showed that about 33% i.e. 62 million workers were paid less than the indicative national minimum wage, and the rate of low pay was higher among women. It further said that since there is a lack of consensus with regard to the methodology used to determine the minimum wage rate, neither the central nor state governments are using it as a floor for determining minimum wages. It added that though the overall wage inequality in India has declined somewhat since 2004-05, it continues to remain high.

The ILO said daily wages increased rapidly for casual workers, workers from rural areas, unorganised sector and female workers. It said only a limited number of regular/salaried workers, mostly in urban areas and highly skilled professionals earn substantially higher average wages. Daily wages in urban areas remain more than twice as high as wages in rural areas.

In order to ensure inclusive growth through sustainable wage policies, the ILO has recommended extending legal coverage to all workers in an employment relationship, ensuring full consultation of social partners on minimum wage systems, undertaking regular evidence-based adjustments, progressively consolidating and simplifying minimum wage structures, and taking stronger measures to ensure a more effective application of minimum wage law. It also recommends other measures to improve the current minimum wage system in India.

Related News

View all news

India's economy to grow at 7.5% in 2019, 7.7% in 2020: IMF

The International Monetary Fund (IMF) in its January World Economy Outlook update has said that India's economy is expected to grow at 7.5% in the 2019, keeping an upward trajectory as the rest of the......

India has potential to be $5 trillion economy in next 7-8 years: Suresh Prabhu

Expressing confidence over growth of Indian economy, Union Commerce and Civil Aviation Minister Suresh Prabhu stated that India has potential to be a $5 trillion economy in the next 7-8 years. He added......

Working group recommends measures to attain $5 trillion economy by 2025

In order to increase the size of India's economy to $5 trillion by 2025, a working group of the Commerce and Industry Ministry has come out with a blueprint suggesting a bunch of lengthy and short-term......

Top News

View all news

RPP Infra Projects bags orders worth Rs 62.90 crore from BHEL

RPP Infra Projects has bagged orders from Bharat Heavy Electricals (BHEL), Chennai for worth of Rs 62.90 crore. The first order is for providing civil works of Boiler, Mill and Bunker, ESP area of unit......

Glenmark gets tentative ANDA approval for Abiraterone Acetate Tablets

Glenmark Pharmaceuticals Inc., USA (Glenmark) has been granted tentative approval by the United States Food & Drug Administration (USFDA) for Abiraterone Acetate Tablets USP, 250 mg, a generic......

HDFC Standard Life Insurance reports 18% rise in Q3 net profit

HDFC Standard Life Insurance has reported results for third quarter ended December 31, 2018. The company has reported a rise of 18.48% in its net profit at Rs 245.63 crore for the quarter under review......