Double the National Minimum Wage, and top it up with HRA, suggests committee report

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Published: February 15, 2019 12:56:11 PM

National minimum wage may get more than double at Rs 9,750 per month plus HRA if the proposal of an expert committee is accepted.

National minimum wage suggested at Rs 9,750 from the current Rs 4,576.

The national minimum wage could be set at Rs 9,750 per month, almost double the current level, along with an additional Rs 55 per day of average HRA for urban workers, an expert committee has submitted.

The January report, which went public for suggestions on Thursday, has also suggested an alternate plan, with a range of Rs 8,892-11,622 per month of national minimum wage for five different regions as they have diverse socio-economic and labour market situations, The Indian Express reported.

The committee said that the house rent is a major portion of the overall non-food component. However, the proposed addition of the HRA to the minimum wage will differ according to the different cities and towns. “The panel has suggested along with recommending a separate study to be undertaken to determine city compensatory rent allowance by type of city and town,” The Indian Express said.

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The proposed Region I covers Assam, Bihar, Jharkhand, Madhya Pradesh, Odisha, Uttar Pradesh and West Bengal. Region II includes Andhra Pradesh, Chhattisgarh, Rajasthan, Jammu & Kashmir and Uttarakhand. Region III has Gujarat, Karnataka, Kerala, Maharashtra, and Tamil Nadu. Region IV includes Delhi, Goa, Haryana, Himachal Pradesh and Punjab. Region V covers the states Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Sikkim, Mizoram and Tripura.

The committee has recommended Rs 8,892 per month for Region I (Rs 342 a day), Rs 9,880 per month for Region II (Rs 380/ day), Region III at Rs 10,764 per month (Rs 414/ day), Region IV at Rs 11,622 per month (Rs 447/day) and Region V at Rs 10,036 per month (Rs 386/day), The Indian Express said.

Presently, the national minimum wage stands at Rs 4,576. To estimate the national minimum wage at the regional level, the committee has also suggested the use of nationally representative food basket for all regions, instead of the regional representative.

Covering all workers irrespective of the skills, sectors, occupations and rural-urban locations, the report has been presented by a seven-member expert panel.

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