Delhi LG approves hike in minimum wages by 37 per cent

Delhi Lieutenant-Governor Anil Baijal on 3 March 2017 approved the Delhi government’s proposal to hike the minimum wages of labourers by 37 per cent.

However, the notification for its implementation will be issued on 6 March 2017. Once implemented, this hike will be the historic and the highest in the independent India.

As per this Delhi Cabinet’s decision, for an unskilled worker the minimum wages will be Rs 13350 per month against the existing Rs 9724 per month.

On the other hand, for the semi-skilled and skilled workers, the wages will increase from Rs 10764 to Rs 14698 and from Rs 11830 to Rs 16182 per month, respectively.

Key Highlights
• The hike in minimum wages will benefit around 50 lakh people in Delhi.
• State and district level monitoring committees will also be formed to ensure that employers pay the new minimum wages to the workers.
• Employers will also be required to provide online information regarding the payment of minimum wages by them. Earlier, there were inspectors who used to verify whether an employer is paying minimum wages to employees or not.
• The Minimum Wages Bill, which is awaiting the Centre’s approval, proposes a penalty of Rs 50000 and jail term up to three years for violation of the provisions of minimum wages. At present, the penalty is Rs 500, while the jail term is six months.

Background
In August 2016, Delhi government proposed a hike of 50 per cent minimum wages. However, the decision was struck down by the then Lieutenant Governor Najeeb Jung.

Delhi CM Arvind Kejriwal defended the difference between the last year’s hike and the present 37 per cent by quoting the seasonal variations in the prices of food and other items.