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New Delhi, Feb 19 (PTI) To bring parity in minimum wages

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Press Trust of India
for workers in unorganised sector across states, the government is expected to take up a proposal in the Cabinet soon to make the national floor level minimum wage statutory. At present the minimum wages is Rs 115 per day but since it is not binding on state governments and employers, the Centre merely advises the states to raise the wages so that they are on par with the national floor level. Sources said the government could introduce amendment to the Minimum Wages Act, 1948 in the Budget Session of Parliament itself if the proposal is cleared by the Cabinet. They said there are as many as 15 states at present are paying workers less than the national floor level minimum wage. Assam, Uttar Pradesh, Maharashtra, Tamil Nadu, Odisha and Chattishgarh are among the states where the minimum wages paid are less than national floor level minimum wages. The Labour and Employment Ministry had taken the proposal to the Cabinet as early as in 2009, but because of differences it was referred to a committee of secretaries. Sources said Agriculture Ministry had reservations about putting in place a legally enforceable minimum wage, arguing that it would be difficult in enforcing it and that it would put additional financial burden on states. Besides, fears were expressed that higher wage could entice labour away from farming and plantation, where daily wages are low. The CoS had finally cleared the proposal in August last year following which it was put before the state labour ministers' conference in September. Once made statutory, the national floor level would be revised every five years taking into account the rise in consumer price indices, sources said.

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First Published: Feb 19 2013 | 10:10 PM IST

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