News about minimum wages being set at Rs18,000 pm, Misleading, clarifies RAI

Posted by: at 8/25/2017 04:35:00 am


New Delhi, 25 August 2017: It has come to the notice of Retailers Association of India (RAI) that a certain misperception is being spread on social media with regards to minimum wages. It is being broadcasted that the Central Government has increased the minimum wages across the country, across sectors to Rs18,000 per month.

As the apex body of retailers, RAI would like to clarify that this content is incorrect and misleading.

The fact is that there has been a modification in a certain Act that relates to minimum wages. The change is as explained below:

The Payment of Minimum Wages Act of 1936 was applicable to those who earned less than Rs.18,000 per month. Now, this wage ceiling has been removed. This means that now the Act will be applicable to all employees, irrespective of their monthly wages.

The Labour Code on Wages Bill, 2015 (Wage Bill) has been introduced by the Government to reform labour laws in the country. The proposed bill did not get cleared during the monsoon session of the Parliament and should come up in the winter session. It will subsume the Minimum Wages Act of 1948, the Payment of Wages Act of 1936, the Payment of Bonus Act of 1965 and the Equal Remuneration Act of 1976.

RAI would like to add that the Centre has yet to set a minimum wage that will be applicable across all sectors and states. However, this will happen only after constituting an advisory board for recommending the minimum wage limit.

When the time comes, being the representatives of retailers in India, RAI will submit its recommendation to the government with regards to minimum wages from retail industry standpoint.

About Retailers Association of India:
Retailers Association of India (RAI) is the unified voice of Indian retailers. RAI works with all the stakeholders for creating the right environment for the growth of the modern retail industry in India. It is a strong advocate for retailing in India and works with all levels of government and stakeholders with the aim to support employment growth and career opportunities in retail, to promote and sustain retail investments in communities from coast-to-coast, and to enhance consumer choice and industry competitiveness.  http://www.rai.net.in


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