ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Minimum wages have been defined as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract.

Detailed explanation-2: -Most media report that the average Indian salary for unskilled work ranges between INR 2250 to a maximum of INR 70, 000 per month, under the Minimum Wages Act. However, the median salary in India comes at around just INR 29, 400 (approx.US$377.82).

Detailed explanation-3: -The Minimum Wages Act specifies that wages should not be below a specified minimum. The government enforces this law so that employers may not exploit their workers by paying them low wages.

Detailed explanation-4: -The Ministry of Labour sets the wage under the guidelines of the Minimum Wages Act which was passed in the year 1948. The act ensures a minimum amount which must be paid to the workers employed in a factory or industry.