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Thursday, April 7, 2011

Central Government Revises the National floor level Minimum Wage (NFLMW) from Rs. 100 Per Day to Rs. 115 Per Day Effective from 01.04.2011

The Central Government has revised the National Floor Level Minimum Wage (NFLMW) from Rs. 100/- per day to Rs. 115/- per day effective from 01.04.2011, on the basis of the rise in the All – India Consumer Price Index for Industrial Workers during the period. The NFLMW is a non-statutory measure. Accordingly, all the State Governments/Union Territory Administrations have been requested to fix/revise minimum wages in such a way that in none of the scheduled employments, the minimum wage is less than National Floor Level Minimum Wage of Rs.115/- per day at present.
Further, in order to have a uniform wage structure and to reduce the disparity in minimum wages across the country, a concept of National Floor Level Minimum Wage (NFLMW) was mooted. The NFLMW per day has been revised from time to time primarily taking into account the increase in the Consumer Price Index Number for Industrial Workers. The National Floor Level Minimum Wage had been revised from Rs 80/- per day to Rs 100/- per day w.e.f. 01.11.2009. In the Central Sphere, minimum rates of wages were revised for workers in the Employment of  ‘agriculture’ , stone breaking and stone crushing’ , sweeping and cleaning’ , watch and ward’, ‘loading and unloading’ , ‘construction’, and ‘non-coal mines’ w.e.f. 01.10.2010 in the range of Rs.146/- to Rs.310/- per day for different categories of workers in different areas. The Central Government had also notified the Payment of Wages (Nomination) Rules, 2009 defining the procedure for nomination and restricting the nomination by workers to his family members.
The Union Government had earlier set up five Regional Committees in order to reduce the regional disparities in the minimum wages of same or similar scheduled employments. The regional disparity in minimum wages is attributed to differences in socio-economic and agro-climatic conditions, prices of essential commodities, paying capacity, productivity and local conditions influencing the wage rate. The composition of the five Regional Committees is as under:
States/UTs covered
Eastern Region (6)
West Bengal, Orissa, Bihar, Jharkhand, Chhattisgarh and Andaman and Nicobar Islands.
North Eastern Region (8)
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.
Southern Region (6)
Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Puducherry and Lakshadweep.
Northern Region (9)
Punjab, Rajasthan, Himachal Pradesh, Jammu and Kashmir, Haryana, Uttar Pradesh, Uttrakhand, Delhi and Chandigarh.
Western Region (6)
Maharashtra, Gujarat, Goa, Madhya Pradesh, Dadra and Nagar Haveli and Daman and Diu.

The main function of these Committees is to interact periodically with the State Governments/Union Territory Administrations of the different regions so as to deliberate on matter of regional interest as well as bridge the gap in the minimum wages of the same scheduled employment.
The Central Government had also re-constituted two Advisory Boards namely Minimum Wages Advisory Board (MWAB) vide notification in the Gazette of India (Extra Ordinary) S.O. 1334 (E) dated 7th June, 2010 and Central Advisory Board (CAB) vide notification in the Gazette of India (Extra Ordinary) S.O. 2064 (E) dated 23rd August, 2010 under Section 7 and 8 respectively of the Minimum Wages Act, 1948. 
Source: PIB Release, April 7, 2011

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