37% hike in minimum wages of workers: Delhi Government

The Delhi government approves an around 37% hike in the minimum wages for unskilled, semi-skilled and skilled persons in the national capital. This is the second time that the Aam Aadmi Party government has approved an increase in the minimum wages of the workers. An earlier proposal seeking a 50% hike had been rejected by then LG Najeeb Jung on the grounds that the committee set up to draw the wages did not have his approval. The cabinet then set up a new committee in keeping with the former LG's orders and restructured the wages on the basis of its report. The AAP government's latest move assumes significance given that the city will go to municipal polls in April. The CM, Arvind Kejriwal, stated that the committee's recommendations will be sent to Lt Governor Anil Baijal by next week and that he will meet the LG personally and convince him to give his nod at the earliest so that workers are benefited. As per the Cabinet's decision, the minimum wages for unskilled persons will be Rs13, 350 per month against the existing Rs 9, 724 per month. For semi-skilled and skilled persons, it will increase from Rs 10,764 to Rs 14,698 and from Rs11, 830 to Rs 16,182 per month respectively. This is the first time in the country that revision of the minimum wages is proposed on the basis of a scientific method. The Delhi CM further added that “ I hope the L-G will clear the recommendations by next week as we have followed all procedures. It will be the biggest gift for workers on the occasion of Holi.” The government-appointed committee had approved a 50% increase in the minimum wages Rs 14,052 for unskilled person, Rs 15,471 for semi-skilled and Rs 17,033 for skilled person per month. The Delhi government stated that there was a difference of only Rs 600-700 between the recommendations of the two committees and they could have easily implemented the previous committee's recommendations, but did not want any fight with former Lt Governor. “ We would have made some changes in the recommendations of second committee but we avoided any hurdles in implementing the cabinet decision and in view of this, we have approved the recommendations without any changes,” CM said. Labour minister was of the view that the minimum wages used to be decided on the basis of three points housing, clothing and food. But the committee, which held seven meetings, has also included education, electricity and fuel considering their market prices. The former LG-appointed committee consisted of five representatives each from government, industry associations and labour unions.

The proposed rise in the minimum wages shall surely come as a pleasant surprise to all the workers, who have been awaiting the same for quite some time now. However, the businesses in Delhi maybe affected majorly by the sudden rise in minimum wages as it may cause a little dip in their profit earning.