Legislators, managers receiving highest pay hikes since 1993: ILO report

The low-skilled profession is paid only 60% of the average earnings

In India, where wage inequality and low pay remains a serious challenge to inclusive growth, the average daily salaries drawn by managers, legislators and senior officials almost doubled between 1993-94 and 2011-12, reveals a recent report by the International Labour Organisation (ILO). The study says this is the fastest growth rate across occupational categories.

According to the report, managers, legislators and senior officials’ real wages rose 98 per cent on average, while professionals got a salary hike of 90 per cent. On the other hand, real wages payable to plant and machine operators rose only 44 per cent on average in the two-decade-long duration.

In terms of occupational categories, the average hike in real daily income was 93 per cent but the pace of increase reduced after 2004-05. The report says, “The ratio between the best-paid occupation and the lowest ranked was 7.2 in 1993–94, increased to 10.7 in 2004–05 and declined to 7.6 in 2011–12.” Moreover, for low-skilled occupations, daily wages were up 7.3 per cent between 2004-05 and 2011-12, the report noted.

The ILO report, which analysed data from the National Sample Survey Organisation, also informs that the salary surge in urban India’s salaries between 1993-94 and 2004-05 was largely driven by rising pay packets in the professional and administrative categories. 

There has been some gender bias in the distribution of wages in low-skilled jobs, with women being paid just 69 per cent of the wages received by their male counterparts. This difference in pay widened in 2011-12. Also, scheduled castes were drawing among the lowest salaries, the report said.

Despite the gradual decrease of gender pay gap in occupational segments, the difference between men and women’s average daily wage still exists. Furthermore, low-skilled female employees tend to receive fewer social security benefits than men, the ILO report highlighted.

With inputs from The Times of India (TOI