National Floor Level Minimum Wage (NFLMW)

News: The Indian government is fast-tracking the introduction of a national floor-level minimum wage (NFLMW) to address differences in worker pay across states.

About National Floor Level Minimum Wage (NFLMW)

• The National Floor Level Minimum Wage (NFLMW) is the minimum pay below which no state government can set the minimum wage for workers. 
  • Wage includes basic pay, dearness allowance and retaining allowance, and is to be the basis for calculation of benefits and social security contributions.
• This is a non-statutory measure to guarantee an increase in minimum wages across states.
• It was first introduced by the Ministry of Labour and Employment in 1996 to provide employees and their families with a minimal standard of living.
  • The Code on Wages, 2019, also provides for floor wages to be fixed by the Central government based on the minimum living standards of employees, including food, clothing, etc.
• It has been revised from time to time, taking into account the increase in the Consumer Price Index Number for Industrial Workers.
• It will be fixed for different geographical areas to ensure that no state government sets the minimum wage below the notified floor wage.
• Current NFLMW is ₹176 per day. This has remained unchanged since 2017. 

About Minimum Wages Under the Code of Wages, 2019, Minimum wage rates for time work, piece work for different wage periods (by hours, day or by month) are fixed by the appropriate Government.  It is based on the skill of the employee, and/or geographical area and the arduousness of work.  The minimum rate of wages may consist of basis rate of wages and allowances. The government will revise the minimum rate of wages in every five years.