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Union Government hiked national floor-level minimum wage to 160 rupees per day

The new rate will be effective from 1 July 2015.

Jun 30, 2015 11:00 IST

The Union Government in June 2015 increased the national floor-level minimum wage (NFLMW) to 160 rupees per day from 137 rupees per day. The new rate will be effective from 1 July 2015.

If states revise their minimum wages as per the new NFLMW, the decision is expected to benefit millions of workers in the scheduled employments in the respective state jurisdictions.

About national floor-level minimum wage (NFLMW)

• It was implemented for the first time in 1996 on the basis of the recommendations of the National Commission on Rural Labour (NCRL) under the Minimum Wages Act, 1948.
• Its purpose is to have a uniform wage structure and to reduce the disparity in minimum wages across the country.
• It is a non-statutory measure and after every revision, the State Governments are persuaded to fix minimum wages such that in none of the scheduled employments, the minimum wage is less than NFLMW.
• List of scheduled employment differs from state to state and covers a wide spectrum of employment-creating sectors ranging from industry, construction, agriculture and services sectors.
• It was fixed at 35 rupees per day in 1996 and has since been revised almost regularly every two years taking into account the increase in the CPI (IW).
• It was last raised in July 2013 from 115 rupees a day fixed in 2011.

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