National Flour Level Minimum Wages and Variable Dearness Allowance (VDA)

STARRED QUESTION NO-582

National Flour Level Minimum Wages

582 . SHRI OM PRAKASH MATHUR

(a)the existing rate of minimum wages in Rajasthan and every other State and Union Territory;

(b)whether Government proposes to make National Floor Level Minimum Wages (NFLMW) statutory and universal and if so, the details thereof;

(c)whether many States have not been revising minimum wages on regular basis;

(d)if so, the details of such States/Union Territories and the reasons therefor and Government”s reaction thereto; and

(e)the steps taken by Government to resolve this issue and ensure uniform minimum wages throughout the country?

MINISTER OF LABOUR AND EMPLOYMENT (SHRI MALLIKARJUN KHARGE)

(a) to (e): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE RAJYA SABHA STARRED QUESTION NO. 582 FOR 08.05.2013 BY SHRI OM PRAKASH MATHUR: REGARDING NATIONAL FLOOR LEVEL MINIMUM WAGES.

(a): A statement indicating range of minimum wages for workers in the Centre and State/UTs including the State of Rajasthan based on information available in the Ministry is given at Annexure-I.

(b): Yes, Sir. The Cabinet has approved the proposed amendments to the Minimum Wages Act, 1948 which, inter-alia, includes making National Floor Level Minimum Wage (NFLMW) statutory and universal.

(c) & (d): Under the provisions of the Minimum Wages Act, 1948, both Central and State Governments are appropriate Governments to revise the minimum wages in respect of workers employed in the scheduled employments under their respective jurisdictions at an interval not exceeding five years. In addition, Variable Dearness Allowance (VDA) is also to be added to the basic wage to neutralize the effect of price rise. At present, VDA is non-statutory and revised generally twice a year. As per available information, 26 States/UTs revise minimum wages incorporating VDA.

(e): From time to time suggestions have been received to ensure uniform wage rate in the country. Since fixation of wages depends on a number of factors such as local conditions, cost of living, paying capacity of the employers etc which vary from State to State, it would not be possible to maintain uniformity in wages. However, with a view to reduce disparity, the concept of NFLMW has been introduced. The State Governments/Union Territory Administrations are advised to fix/revise minimum wages for scheduled employment under their respective jurisdictions in such a way that the minimum wages should not fall below the NFLMW. The Cabinet has recently approved, inter-alia, the proposal to make NFLMW statutory and to make it applicable to all employments irrespective of the number of workers engaged.

Source: www.rajyasabha.nic.in
Annexure: http://164.100.24.219/annex/228/As582.docx