Unpacking Minimum Wage Increase in India

Deception at the Helm of Indian Politics

Following the revision, the minimum wage rates in area “A” are set as follows:

• For unskilled workers in construction, sweeping, cleaning, and loading/unloading: ₹783 per day (₹20,358 per month).

• For semi-skilled workers: ₹868 per day (₹22,568 per month).

• For skilled workers, clerical roles, and watchmen without arms: ₹954 per day (₹24,804 per month).

• For highly skilled workers and watchmen with arms: ₹1,035 per day (₹26,910 per month).

To begin with, this impact stems from an article published on flamesofdissent.com on August 18, 2024. It’s not a coincidence; it happens almost every time.

The new wage rates will take effect from October 1, 2024 and is categorized based on skill levels-unskilled, semi-skilled, skilled, and highly skilled-as well as by geographical area – A, B, and C. This approach is nothing short of a deception.

In USA, the world’s largest economy, the minimum wage is $15 and above. This means, someone working in a coffee shop, a gardener, a bar attender, a mechanic, a mason, a driver and the guy who delivers the mail, are all entitled to this $15 an hour. It can be higher than the minimum wage depending on the requirement and skills.

In Germany, the 4th largest economy, the minimum wage as of January 1, 2024, is €12.41 per hour. United Kingdom (UK) is the 6th largest economy in the world which is next to India. In UK, the National Living Wage is £11.44 per hour for workers aged 21 and over. It is £8.60 per hour for those between the age of 18–20, it is £6.40 per hour for those between the age of 16–17 and it is £6.40 per hour for Apprentices.

Not just the minimum wage, India spends far less than Pakistan for public healthcare. Public education in India will not be on par with that of the USA or other developed countries by 2047 unless the government significantly increases its spending.

Out sourcing business in India is an opportunity created through this low wage meant to exploit our people. The successive governments glorified it and the ruling BJP is no different.

A complete shutdown of outsourcing, including software development and call centers, would not impact our economy if the government raises the minimum wage to match that of the world’s sixth-largest economy.

Domestic call centers and software businesses would continue to thrive, reducing our dependence on countries like the USA, UK, Australia, and Canada. Many of these jobs will soon be replaced by AI.

India is a country where top 5% owns more than 60% of the country’s wealth, while the bottom 50% of the population possess only 3% of the wealth.

The top 5% often rants about the taxes collected by the government, believing that at least 50% of their earnings go towards tax. They think that they are working 6 to 7 months a year just for the country. They also criticize the poor infrastructure and blame corruption.

This is the result of complex laws and government policies designed to exploit the poor. These intricate policies are intentionally crafted to foster corruption, leading to a growing gap between the rich and poor over the past 78 years, and it continues to widen.

If India’s minimum wage were on par with that of the UK, the 6th largest economy, the wealthiest 5% in India would not earn excessively to the point where six months of their income goes towards tax. This would enable the government to reduce taxes without hindering progress.

Corruption in India could decrease if the minimum wage and the salaries of bureaucrats and other public servants are aligned with those in the world’s sixth-largest economy.

While addressing the joint session of US Congress, PM Modi stated that when he became Prime Minister, India was the 10th largest economy, and now it has risen to the 5th largest. The entire house gave a standing ovation when he announced his goal to make India the third-largest economy in the world.

The irony is that India was already one of the top ten economies when the BJP came to power in 2014, and it remains the same. Likewise, India was among the top twenty countries with the lowest wage in the world, and it remained same during the ten glories years of Modi rule.

The new complicated increase in the minimum wage is nothing short of a mockery of common sense. Rahul Gandhi, who often discusses the two India of the rich and the poor, should realize that it was his late father, grandmother, and their party established such complicated laws.

Successive governments in India since independence have implemented policies that are deeply divisive, fostering corruption and exploitation. The increase in illegal immigration from India to the USA highlights significant issues with Modi’s governance.

The BJP government, which came to power in 2014, inherited these policies and has made numerous changes that have further complicated the situation. They are likely to pass on an even more complicated version of these laws to their successors.

The BJP government led by PM Modi has restricted mainstream media in India and sought to impose similar restrictions on social media. They enacted a law requiring every company operating in India to have a grievance redressal officer based in the country. The case between Twitter and union government of India is a text book example of it.

Whoever governs India after the BJP will benefit from these complicated laws established by Modi to control media and social media. Such changes are being implemented in every sphere by the corrupt Modi government, which came to power because the people of India were fed up with corruption during UPA II.

The government under Modi has helped cover up the corruption that occurred during UPA II. Similarly, if Congress were to defeat BJP in the future, they are likely to cover up the corruption during Modi rule in exchange for leaders like Himanta Biswa Sarma, Ashok Chavan, Shehzad Poonawalla, and others.