Plan paper moots min wages for unorganised field

The approach paper to the Eleventh Five-year Plan period (2007-12) is likely to recommend that states ensure implementation of minimum wages to workers in the unorganised sector.

The paper is also likely to segregate public sector employment from other employment for collecting data and set milestones for improving conditions in the latter.

"The reported numbers about regular wage employees (40 per cent in urban India and around 15 per cent overall) are misleading because they include employees from the government and public sector units," a government official told Business Standard.

The proposals were discussed at the first internal meeting of the Planning Commission to consider the draft of the approach paper to the Eleventh Plan, which was prepared by member Kirit Parikh.

"This is a major departure from the established approach to labour problems in the backdrop of government's failure to introduce a contractual system," the official added.

Officials pointed out that even the Supreme Court had ruled that wages should be adopted in the country. However, a lot of states have not even implemented minimum wages. "The average wage in the country is around Rs 55-Rs 60 which is not enough for sustainability," the official said.

The next Plan may segregate public sector employment from others. "The idea is to encourage wage employment through policy and guidelines and reduce unorganised labour," the official said.

Planning Commission Deputy Chairman Montek Singh Ahluwalia had asked all divisions to flag important issues, which should be reflected in the approach paper.