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The cabinet recently approved The Code on Wages Bill, which proposes to make minimum wages a statutory right for all citizens. The Bill proposes a monthly minimum wage to be set across India, which will be binding on all the states. Once it is passed, the states cannot set a minimum wage lower than the one set by the Central government.
The proposed hike in minimum wages is an obvious attempt on the part of the government to be seen as pro-poor and employee-friendly. But if the government really wants to help both the current crop and the future generation of employees, it should solely focus on easing labour laws, facilitating formalization of the economy, and focus on reducing regulatory hurdles for businesses.
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