ILO report flags wage inequality in India

ILO report flags wage inequality in India


  1. According to the International LabourOrganisation, real average daily wages in India almost doubled in the first two decades after economic reforms, but low pay and wage inequality remains a major concern.

Important facts:

2. Key highlights of the International LabourOrganisation:

  • In 2009-10, a third of all of wage workers were paid less than the national minimum wage.That includes 41% of all casual workers and 15% of salaried workers.
  • In 2011-12, the average wage in India was about ₹247 rupees a day, almost double the 1993-94 figure of ₹
  • However, averagelabour productivity (as measured by GDP per worker) increased more rapidly than real average wages.
  • India’s labour share — or the proportion of national income which goes into labour compensation, as opposed to capital or landowners — has declined.
  • The rise in average wages was more rapid in rural areas, and for casual workers.
  • The average wage of casual workers — who make 62% of the earning population — was only ₹143 a day.
  • Daily wages in urban areas (₹384) also remain more than twice as high as those in rural areas (₹175).
  • Regional disparities in average wages have actually increased over time, with wages rising more rapidly in high-wage States than in low-wage ones.
  • The gender wage gap decreased from 48% in 1993-94 to 34% in 2011-12, but still remains high by international standards.
  • For all worker groups, the average wages of casual rural female workers was the lowest, at just ₹104 a day.
  • State-specific and comparative studies on wages are needed, said the ILO, urging collaborative work between government agencies, academic institutions and expert organisations

3. Suggestions:

  • Stronger implementation of minimum wage laws.
  • Strengthening of the framework for collective bargaining by workers.
  • This is essential to combat persistent low pay in some sectors and to bridge the wage gaps between rural and urban, male and female, and regular and casual workers.
  • State-specific and comparative studies on wages are needed.
Print Friendly, PDF & Email

Free IAS Preparation by Email

Enter your email address to subscribe to the blog followed by several Rankholders and ensure success in IAS.