Context
Amidst the backdrop of economic uncertainty and volatility, daily wage workers continue to face myriad challenges. From meager wages to precarious employment opportunities, the plight of daily wagers underscores the urgent need for comprehensive interventions to address their vulnerabilities.
1: Dimension-Factor behind low wages
Stark difference in India’s minimum wage
India |
America |
In India, minimum wages are not market clearing wages. They are regulatory wages to ensure that market wages do not fall below subsistence. They are expected to cover the essential current costs of accommodation, food and clothing (roti, kapada aur makaan) of a small family. It is inadequate for a dignified life. |
In America, the minimum wage captures the market value of food, accommodation, utilities, transportation, healthcare and social security at subsistence levels for small nuclear families. |
2: Dimension- Impact on low wages on economy
3: Dimension-Required measures
Fact Box: Gross Value Added Gross Value Added is the value of goods and services produced by an industry, sector, manufacturer, area or region in an economy. Minimum Wage
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UPSC PYQ: |
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