Minimum wage hike may be less than what AAP promised

Calculations based on prices of essential items

Number game:Fresh calculations show that the minimum wage in Delhi may vary from Rs.8,828 to Rs.12,157 a month, much lower than the Rs.14,000 per month proposed by the Delhi government earlier this year— File Photo: Rajeev Bhatt

Lakhs of private sector workers here may not get the steep 46 per cent hike in minimum wages as promised by the Aam Aadmi Party-led Delhi government.

The Delhi government’s minimum wage advisory committee had met here on November 7 to deliberate upon a fresh minimum wage rate for the workers after the previous plan was scrapped following a diktat from Lieutenant-Governor Najeeb Jung.

It was decided that the cost of essential items gathered by the panel from various markets in Delhi will be the basis of fixing the minimum wage for workers, likely be decided on November 17, a panel member said on the condition of anonymity. Fresh calculations show that the minimum wage rate in Delhi may vary from Rs.8,828 to Rs.12,157 a month — much lower than the Rs.14,000 per month proposed by the Delhi government earlier this year.

Mr. Jung had asked the Delhi government to reconstitute the minimum wage advisory committee, even as the industry had approached him saying that the minimum wage level had been over-estimated. Calculations based on the present prices of essential items gathered by the committee from various markets in Delhi show that the minimum monthly wage rate may vary between Rs.8,828 and Rs.12,157.

The Hindu has reviewed a copy of the cost prices of essential items gathered by the committee from at least six markets in Delhi on October 21.

Each State can fix its own minimum wage level for industries based on spending estimates for a working class family based on a requirement of 2,700 calories per person, 72 yards clothes, minimum housing rent, and cost of education, light and fuel, as prescribed by the Indian Labour Conference in 1957.

In its previous calculations, the Delhi government had taken the cost of food items based on the rates at government store Kendriya Bhandar. Back-of-the-envelope calculations in this case come to around Rs.9,780 per month.

This rate is a notch higher than the present minimum wage of Rs.9,568 earned by an unskilled worker here. If the average of the cost prices of essential items from various markets is taken into account, the average minimum monthly income may be estimated at around Rs.10,000 a month. While trade unions are in favour of a hike in minimum wages, the industry has been against it stating that present rates in Delhi are already 20 per cent higher than its neighbouring States. The re-constituted minimum wage advisory committee has held five meetings so far and is set to prescribe the monthly minimum wage in the final meeting on November 17 .