Why Do Degree Holders and Laborers Earn Similar Salaries? Seeking Insights on Pay Discrepancies in India

Salary Discrepancy Between Degree Holders and Laborers

I'm Chirag Parmar. My English is a little bit poor; sorry for that. I am working in a good company now with a good salary, but at the start of my career, I felt I was paid as much as a contract laborer.

My question is non-technical. Why does the company pay an equal or similar salary (around 8000 to 10000 per month) to individuals who hold a Master's or Graduate degree and to laborers who are starting their careers? Is there no value for a degree? (A contract laborer with a 10th or 12th-grade education receives a salary of 325*26 = 8,450/-, and a degreed person receives a nearby amount). Individuals with Master's or Graduate degrees have invested significant time and money in obtaining their degrees. Are they considered the same? Are there any rules and regulations governing this? Please solve my query. Thank you.

Location: Jalalpur, India

Tags: contract labor, Country-India, City-India-Jalalpur

In India, the issue of disparity in salaries between degreed individuals and contract laborers is a common concern that touches upon various aspects of labor laws and regulations. Here are some key points to consider:

Understanding the Disparity:
- The salary gap between individuals with degrees and contract laborers often stems from the nature of employment contracts and industry practices.
- Companies may differentiate pay based on factors such as job roles, skills required, experience levels, and bargaining power.

Legal Framework:
- India's labor laws, including the Minimum Wages Act, aim to ensure fair compensation for all workers, including contract laborers.
- The Equal Remuneration Act prohibits discrimination in wages based on gender and can be extended to protect against discrimination based on educational qualifications.

Contract Labor Regulations:
- The Contract Labor (Regulation and Abolition) Act, 1970, governs the employment of contract laborers in establishments.
- Employers are required to adhere to minimum wage rates set by the respective state governments for different categories of workers.

Addressing the Issue:
- If you feel unfairly compensated compared to contract laborers, consider discussing this with your HR department or management.
- Highlight the value your education and skills bring to the organization and negotiate for a salary commensurate with your qualifications and contributions.

Seeking Support:
- If you believe there is a violation of labor laws or discrimination based on educational qualifications, you can seek guidance from local labor authorities or legal professionals.
- Document any instances of unfair treatment or wage discrimination for reference in case further action is needed.

By understanding the relevant labor laws, communicating effectively with your employer, and seeking appropriate support, you can address concerns regarding salary discrepancies and advocate for fair compensation based on your qualifications and experience.