India must introduce stronger wage policies if it is to truly promote inclusive growth, according to the International Labour Organisation (ILO).
While the country's economy has experienced annual average GDP growth of 7% over the last two decades, low pay and inequality persist, the ILO said in its India Wage Report.
It indicated that about 62 million workers are still paid less than the indicative national minimum wage, with rates of low pay being higher for women than men. According to the Economic Times, women employed as casual workers in the rural economy earn the least, at about 22% of what urban regular male workers would make.
Figures from the Employment and Unemployment Survey of National Sample Survey Office for 2011–12 show that the average salary in India is about Rs 247 (US$3.53) per day, while the average wage of casual workers is estimated to be more like Rs 143 (US$2.04) per day.
According to the ILO, while overall wage inequality in India has declined somewhat over the last 14 years, it continues to remain high. The gender wage gap is also still steep, despite having dropped from 48% in 1993-1994 to 34% in 2011-2012.
In order to improve the country’s current minimum wage situation, the ILO recommended extending legal coverage to all employed workers and ensuring social partners are fully consulted on the system. It also advised making regular evidence-based adjustments to it, progressively consolidating and simplifying minimum wage structures and taking stronger measures to ensure the law is applied more effectively.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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India must introduce stronger wage policies if it is to truly promote inclusive growth, according to the International Labour Organisation (ILO).
While the country's economy has experienced annual average GDP growth of 7% over the last two decades, low pay and inequality persist, the ILO said in its India Wage Report.
It indicated that about 62 million workers are still paid less than the indicative national minimum wage, with rates of low pay being higher for women than men. According to the Economic Times, women employed as casual workers in the rural economy earn the least, at about 22% of what urban regular male workers would make.
Figures from the Employment and Unemployment Survey of National Sample Survey Office for 2011–12 show that the average salary in India is about Rs 247 (US$3.53) per day, while the average wage of casual workers is estimated to be more like Rs 143 (US$2.04) per day.
According to the ILO, while overall wage inequality in India has declined somewhat over the last 14 years, it continues to remain high. The gender wage gap is also still steep, despite having dropped from 48% in 1993-1994 to 34% in 2011-2012.
In order to improve the country’s current minimum wage situation, the ILO recommended extending legal coverage to all employed workers and ensuring social partners are fully consulted on the system. It also advised making regular evidence-based adjustments to it, progressively consolidating and simplifying minimum wage structures and taking stronger measures to ensure the law is applied more effectively.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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