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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
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