Kinjаl Agrаhаri, School of Law, UPES Dehradun
ABSTRACT
This article examines India's National Floor Level Minimum Wage (NFLMW), a crucial concept embedded in new legislation called Code on Wages, that ensures all workers in the nation have access to a minimal standard of living. It also endeavored to fight the economic injustice prevailing in the football industry and assert the standards of just compensation and proper working conditions for the players that led NFLMW to re-organize in 1991. The recent enactment of the Code on Wages enhances the formal structure on minimum wages at the national level. The study stresses the fact that there is often a difference between national standards and regional economics, and when comparing similar strategies in countries such as Brazil and the USA, it becomes apparent that some modifications must be made. There have been ongoing debates regarding the impact of setting minimum wages the governments’ recent commitment of building a living wage standard in the country by the year 2025 is a positive step towards providing for the welfare of the workers as well as moving towards humanized wages.
The NFLMW aims to reduce income gap in the Indian economy that has been on the rise over the years. The main intent behind wanting to set a national floor is to close the income gap between a Silicon Valley IT professional earning big bucks in Bengaluru and a textile worker in Tamil Nadu.
The problems related to the usage of minimum wages and the possible outcomes of standardization remain an object of discussion. While the NFLMW can help address inequality, there is the possibility it does not account for the difference in living standards across states and therefore, poor rate earners especially in the more economically developed regions could struggle to make ends meet at the minimum wage.
Keywords: NFLMW, Minimum wage, ILO, Living conditions, poverty.
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