Centre has decided to put on hold a proposal to raise minimum wages for all by up to 25 percent as of now due to fall in both global and domestic demand that affected manufacturers in the country.
‘The Economic Times’ has quoted an official as saying that the time is not suitable to improve wages and make it obligatory on all states as this would increase raise the input cost for manufacturers and make them uncompetitive.
He told the paper that proposal may be considered at later stage, when demand increases so that the added burden sustained by manufacturers through higher wages is compensated by growth in order inflow.
Centre is projecting lower cost of labour in India vis-a-vis China, where wages are on the upsurge, as an attraction for manufacturers to set up shops along with its emphasis on ease of doing business.
Last year, all states and union territories were grouped into three categories based on per capita income and minimum wages for the unskilled, semiskilled and skilled workers.