Minimum wages to workers in private sector

Minimum wages to workers in private sector 

Posted On: 07 AUG 2023 4:51PM by PIB Delhi

The Minimum Wages Act, 1948, provides for fixing minimum rates of wages in scheduled employments including those in the private sector. Both the Central Government and the State Governments are appropriate Governments to fix, review and revise the minimum wages in scheduled employments in their respective jurisdiction and the minimum rates of wages so fixed are equally applicable to both public and private sector. Under the Code on Wages, 2019, minimum wages fixed by the appropriate Governments are applicable across all employments in public and private sectors, and organized and unorganized sectors. The provisions of the Code on Wages Act, 2019, relating to minimum wages have not come into force.

The Government is implementing the Unorganised Workers social security Act (UWSS), 2008, to provide social security to unorganized workers by formulating suitable welfare schemes on the matters relating to: (i) life and disability cover; (ii) health and maternity benefits; (iii) old age protection; and (iv) any other benefit as may be determined by the Central Government.

Life and disability cover is provided through Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) based on contribution made by subscriber. PMJJBY is available to the people in the age group of 18 to 50 years and it provides for risk coverage Rs. 2.00 lakh in case of death, due to any reason, at an annual premium of Rs. 436/-. The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is available to the people in the age group of 18 to 70 years with risk coverage of Rs 2.00 lakh in case of accidental death or total permanent disability and Rs. 1.00 lakh for partial permanent disability on payment of annual premium of Rs. 20. The Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (ABPMJAY) provides an annual health cover of Rs. 5 lakhs per eligible family for secondary and tertiary care hospitalization corresponding to 1949 treatment procedures across 27 specialties.

In order to provide old age social security cover, the Government of India launched Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) pension scheme in 2019. It provides monthly pension of Rs. 3000/- after attaining the age of 60 years. The unorganized workers in the age group of 18-40 years whose monthly income is Rs.15000/- or less and who are not a member of EPFO/ESIC/NPS (Govt. funded) can join the PM-SYM Scheme. Under this scheme 50% of the monthly contribution is payable by the beneficiary and equal matching contribution is paid by the Central Government.

The Government has launched e-Shram portal in August, 2021 to create National Database of Unorganised Workers and to facilitate delivery of social security schemes/welfare schemes to the unorganised workers. As on 02.08.2023 more than 28.99 crore unorganised workers have been registered on e-Shram portal.

This information was given by Union Minister of State for Labour and Employment Shri. Rameshwar Teli in a written reply in the Lok Sabha today.

*****