Revised Legal Pay For Workers Remains Overdue Amid Rising Living Costs

Image Source : The Financial Express

India’s national minimum wage has not been revised in eight years, despite rising living costs and inflation. While some states have updated rates, disparities persist across regions and sectors. Experts call for a modernized framework that reflects living wage standards and ensures fair pay for millions of workers nationwide

India’s national minimum wage framework is under renewed scrutiny as experts and labour groups highlight the long delay in revising legal pay standards. Despite inflationary pressures and widening disparities across states and sectors, the national minimum wage has not been updated for over eight years.

Key Highlights From The Wage Debate
- The national minimum wage rate has remained stagnant since 2017, despite significant increases in the cost of living and consumer price index
- States like Delhi have independently revised their minimum wage rates, with unskilled workers earning ₹17,494 per month as of October 2023
- Disparities persist not only between states but also within sectors and skill categories, leading to inconsistent enforcement and worker vulnerability
- The concept of a “living wage”—a pay level that supports basic needs—is gaining traction, but remains outside the legal framework
- Labour law updates in states like Kerala, Maharashtra, and Uttar Pradesh have adjusted wages based on CPI, yet national harmonization is lacking
- The 2025 revisions implemented in January aimed to uplift standards, but experts argue they fall short of bridging the gap between legal and living wages

Cultural And Strategic Relevance
The overdue revision of legal pay reflects deeper structural challenges in India’s labour market. With millions of workers in informal and semi-formal sectors, stagnant wages contribute to economic insecurity and social inequity. The issue is especially pressing post-pandemic, as households grapple with rising food, housing, and healthcare costs.

Industry Context
India’s wage policy is governed by the Minimum Wages Act of 1948, but enforcement varies widely. While some states have proactively updated rates, others lag behind, creating uneven protections for workers. The push for a national living wage standard is gaining momentum among economists and labour unions.

Market Outlook
Without timely revisions, India risks undermining worker productivity and economic resilience. A modernized wage framework—linked to inflation, regional costs, and skill levels—could improve compliance, reduce exploitation, and support inclusive growth.

Sources:
[1] Financial Express – Explainer: How Revised Legal Pay For Workers Is Overdue
[2] Grant Thornton Bharat – Labour Law Insights September 2025
[3] Artyz.in – Labour Minimum Wages 2025 Update