Indian Government’s Major Step to Target Poverty, Might Replace Minimum Wage by Living Wage

Business News: The government is planning to replace the minimum wage with a living wage by next year, aiming to lift millions out of poverty. Recently, the International Labour Organization introduced the concept of a living wage. The government believes transitioning to living wages could significantly reduce poverty in such a large sector. India is expected to implement the living wage system by next year, aiming to bring significant economic reforms by ensuring better livelihoods for workers.

Who is the Minimum Wage and Living Wage?

A living wage ensures a decent standard of living, factoring in various aspects like lifestyle, education, child health, health protection, and social security. Unlike the minimum wage, which only covers basic livelihood, a living wage considers all these elements. Non-compliance would lead to government intervention. The unorganized sector, employing around 500 million people, mostly receives minimum wages, which are often quite low. State governments decide these wages, varying from state to state.