1. There has been an announcement made by Shri Saurabh Patel, the minister, which declares an increases of approximately Rs. 1600/- per month in the Minimum Wages with effect from April 2014. In the past 17 years, ever since the last Gazette Notification on Minimum Wages was published in 1997, this six monthly Minimum Wage increase has never been more than Rs. 300/- per month with an average of Rs. 130/- to Rs. 140/- or so in 32 such exercises. The Minimum Wages formula has never churned up a figure of even Rs. 300/-. What, therefore, has occurred during the past six months that suddenly the increase has jumped almost six times. The Minimum Wages in industry are in the range of Rs. 5600 to 6000 today. Minimum Wage increase is determined on certain formula. It is desired that the particular formula be made known with details of its parameters and this apparently ridiculous increase be justified. If so, then will the Government of Gujarat explain why in the past the increments in Minimum Wages have been so little. By this six monthly calculator; the Minimum Wage increase in 17 Years would be well over Rs. 52,800 per month.
2. The Government of Gujarat knows that most of its industry and Shops and Establishments do not pay Minimum Wages. In a state where school teachers are hired at Rs. 2500/- to 3,000/- per month and even less, the story is quite clear. Is this the Gujarat shining?
3. Also, as on date a large percentage of workers are dissatisfied as they know that they are not getting the due Wages (Minimum Wage and more). By raising the Minimum Wage so high , the dissatisfaction will simmer further in their hearts and demoralise the large section of workers. It will be counter productive to the nation in short run, as it will put undue and unethical burden on entrepreneurs. Also the entrepreneurs who abide by the rules will be forced to put extra pressure on their work force to keep their units viable. The employment will go down and it will become more difficult for business to welcome trainees. It will be counter - productive in the long run also, as the workers will feel that they are being paid much less than what the government declares.
I am agree with points provided with you.
We are following minimum wage as per shop and establishment act Gujarat, sudden hike in minimum wage will create so much problem in our yearly budget.Now onwards we have to pay 7600rs as per minimum wage.
I dont know why they had make big decision on this serious isuue?
From India, Pune
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.