Announcement of Minimum Wage Increase
There has been an announcement made by Shri Saurabh Patel, the minister, which declares an increase 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 by a 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 calculation, the Minimum Wage increase in 17 years would be well over Rs. 52,800 per month.
Current Wage Practices in Gujarat
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?
Impact of Minimum Wage Increase on Workers and Entrepreneurs
Also, as of 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 demoralize a large section of workers. It will be counterproductive to the nation in the 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 workforce to keep their units viable. The employment will go down, and it will become more difficult for businesses to welcome trainees. It will be counterproductive in the long run also, as the workers will feel that they are being paid much less than what the government declares.
Comment please...
From India, Indore
Acknowledge(0)
Amend(0)
There has been an announcement made by Shri Saurabh Patel, the minister, which declares an increase 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 by a 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 calculation, the Minimum Wage increase in 17 years would be well over Rs. 52,800 per month.
Current Wage Practices in Gujarat
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?
Impact of Minimum Wage Increase on Workers and Entrepreneurs
Also, as of 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 demoralize a large section of workers. It will be counterproductive to the nation in the 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 workforce to keep their units viable. The employment will go down, and it will become more difficult for businesses to welcome trainees. It will be counterproductive in the long run also, as the workers will feel that they are being paid much less than what the government declares.
Comment please...
From India, Indore
Acknowledge(0)Amend(0)
I agree with the points provided by you. We are following the minimum wage as per the Shop and Establishment Act in Gujarat. A sudden hike in the minimum wage will create many problems in our yearly budget. From now on, we have to pay 7600 rupees as per the minimum wage. I don't understand why they made such a big decision on this serious issue?
Thank you.
Regards,
Ashish
From India, Pune
Acknowledge(0)Amend(0)
176Thank you.
Regards,
Ashish
From India, Pune
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Gujarat Minimum wages 1st Apr 2019 to 30th Sep-2019.jpeg
Minimum Wages Gujarat.pdf