MINIMUM WAGE
1. Context
As the International Day of Rural Women approaches, it is disheartening to note that India not only recorded one of the lowest female labour force participation rates (LFPR) in the world but that it was also lower than other South Asian countries except Afghanistan and Pakistan.
2. About the gender wage gap
- The gender wage gap is the difference between the average earnings of men and women, typically calculated as a percentage of men's earnings.
- For example, if women earn 80 cents for every dollar that men earn, then the gender wage gap is 20%.
- The gender wage gap exists all over the world, and it persists even when controlling for factors such as education, experience, and occupation.
3. The gender wage gap in India
- The gender wage gap in India is one of the highest in the world. According to the World Inequality Report 2022, men in India earn 82% of the labour income while the share of women's earnings stands at a mere 18%.
- This means that for every ₹100 that a man earns in India, a woman earns just ₹18.
- This is a significant disparity, and it has several negative consequences for women and girls.
4. The causes gender wage gap
The following are some of the causes of the gender wage gap
- Women are more likely to work in lower-paying occupations than men. For example, women are more likely to work in teaching, nursing, and social work, while men are more likely to work in engineering, construction, and finance.
- Women are often penalized for being mothers, both in terms of their pay and their career advancement.
- For example, women may be less likely to be hired for jobs that require long hours or travel, and they may be more likely to take time off from work to care for their children.
- Women may face discrimination in the workplace, both explicit and implicit.
- For example, women may be paid less than men for doing the same job, or they may be less likely to be promoted into leadership positions.
- Women may be more likely to leave the workforce or take on part-time jobs due to a lack of access to quality childcare. This can lead to a decline in their earnings over time.
- Unconscious bias can lead to women being paid less than men for doing the same job or being less likely to be promoted into leadership positions.
- Women may be less likely to negotiate their salaries than men. This can lead to them being paid less than men for doing the same job.
5. Minimum Wage
- The minimum wage is the lowest wage that employers are legally allowed to pay their employees.
- It is typically set by the government, but can also be negotiated through collective bargaining agreements.
- The purpose of the minimum wage is to protect workers from being paid unfairly low wages.
- It also helps to ensure that workers can earn a living wage, which is defined as a wage that is sufficient to meet the basic needs of a worker and their family.
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The minimum wage in India is set by the central government and the state governments. =
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The central government sets the minimum wage for scheduled employment, which is a list of occupations that are considered to be essential or hazardous. The state governments set the minimum wage for all other employees.
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The minimum wage varies depending on the state and the type of employment. For example, the minimum wage for unskilled workers in Delhi is INR 584 per day, while the minimum wage for skilled workers in Maharashtra is INR 1,300 per day.
- The minimum wage is an important tool for protecting workers and ensuring that they are paid fairly.
- However, it is important to note that the minimum wage is not always enough to support a family.
- In many parts of the world, workers must work multiple jobs or rely on government assistance to make ends meet.
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For Prelims: Minimum wage, Gender wage gap
For Mains:
1. Discuss the gender wage gap in India and its implications for women and girls. What factors contribute to the persistently high gender wage gap in the country? (250 Words)
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Previous Year Questions
1. The Minimum Wages Act (CTET 2014)
A. specifies that minimum wages should be given to labourers
B. specifies that the wages should not below a specific minimum
C. allows employers to decide minimum wages of their employees
D. covers only government employees under the organized sector
Answer: B
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