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Centre Plans Major Minimum Wage Hike, Proposal Aims to Boost Worker Income Nationwide

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New Delhi— The Central Government is working on a significant proposal to increase minimum daily wages across the country, in a move that could substantially improve earnings for millions of workers, particularly in the unorganised sector.

According to sources, the proposed revision may raise minimum wages by ₹350 to ₹450 per day. The initiative is being developed under the framework of newly implemented labour laws, which seek to bring uniformity in wage structures while strengthening worker protections and improving overall employment conditions.

Officials indicate that the revision will primarily benefit workers in the unorganised sector, who form a large share of India’s labour force and often lack consistent wage standards. The proposal is also expected to reduce disparities in pay across states, where wage levels currently vary significantly.

Punjab is likely to align with the Centre’s direction. State authorities have already sent a proposal to revise wage rates to the finance department for evaluation. Existing wage levels in states such as Punjab and Bihar remain lower compared to several industrialised regions, prompting calls for an upward revision.

Some states have already moved ahead with wage increases. Haryana, for instance, has raised wages to push monthly earnings of unskilled workers to around ₹15,000. Industrial zones in Uttar Pradesh have also revised wage structures, while southern states like Karnataka, Maharashtra, and Tamil Nadu continue to maintain comparatively higher wage benchmarks.

The proposed hike forms part of broader labour reforms aimed at improving worker welfare and ensuring fair compensation. However, experts have emphasised the importance of a structured approach, suggesting that wage revisions should be linked to inflation and cost of living, with periodic adjustments rather than abrupt increases.

Industry stakeholders have largely responded with cautious optimism, noting that moderate wage hikes are unlikely to significantly raise production costs. Many believe better wages could enhance workforce stability, improve productivity, and support long-term economic growth.

A final decision on the proposal is awaited, but the move signals a major policy push towards strengthening income security and standardising wages across India.

All news on Encounter News is computer-generated and sourced from third parties. Please read and verify carefully. We will not be responsible for any issues. 

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