The GOI has raised the daily minimum wage from Rs. 137 to Rs. 160. This goes into effect from July 2015 and is the first time in 2 years that the minimum wage has been altered. The MoS for Labour & Employment Bandaru Dattatraya said that the decision to raise the minimum wage had been taken in view of the recent increase in retail inflation for industrial workers.

Advantages of Raising Minimum Wages

• The cost of living is rising.
• It helps cope with inflation.
• It narrows the wealth gap.
• It provides a new lease of life for impoverished Indians.
• The minimum wage, when increased to a proper level so as to aid the poorest of the poor, will be the legitimate ‘living wage’.

Raising the minimum wage is economically beneficial for the poor, it is only a means of fighting poverty and not the solution.