Govt proposes nine hour working shift, prescribes 6 criteria to fix minimum rate of wages in draft rules

Govt proposes nine hour working shift, prescribes 6 criteria to fix minimum rate of wages in draft rules

FPJ Web DeskUpdated: Monday, November 04, 2019, 03:40 PM IST
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The government has proposed a nine hour work shift and a net intake of 2,700 calories in the preliminary draft of the Wages (Central) Rules. As per the draft rules released for public consultation by the Labour Ministry, 66 meters cloth per year per standard working-class family, housing rent expenditure as 10 per cent of food and clothing expenditure, three adult consumption unit and a nine-hour working day and a net intake of 2,700 calories per day are some of the factors that are will determine the fixation of the national minimum wage,. The draft rules have been placed in the public domain for a month beginning November 1. The Labour Ministry has invited comments from stakeholders, including the public, which, can be submitted till December 1.

The draft rules also state that expenditure on fuel, electricity and other miscellaneous items would constitute 20 per cent of minimum wage and expenditure for children’s education, medical requirement, recreation and expenditure on contingencies would constitute 25 per cent of minimum wage. The government has divided the geographical regions into three categories — metropolitan area (area having a population of 40 lakhs or more comprised in one or more districts), non-metropolitan area (area having a population of between 10 lakhs to 40 lakhs) and rural area.

Floor Wages

Manner of fixing floor wage: The central government will constitute a Board for the purposes of fixation of basic rate of floor wage. The board will take into account the minimum living standards taking into account an equivalent of three adult consumption units including worker of the family comprising of food, clothing, housing and any other factors considered appropriate by the Central Government from time to time.

The recommendations of the board will be circulated among States and, based on their views, the basic floor wage will be fixed.

Dearness allowance

The draft rules state that dearness allowance would be revised once before April 1 and October 1 to revise the DA payable to employees on minimum wages. While the central government may revise the basic rate of floor wage ordinarily at an interval not exceeding five years.

The worker unions are unhappy with the draft rules and plan to approach the government with their objections and grievances.

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