On Monday, the Economic Times reported that the Indian government is considering replacing the minimum wage system with a living wage to tackle poverty and help underdeveloped people increase their living standards.

India will replace the minimum wage with the living wage system by 2025

The difference between a living wage and a minimum wage is that a living wage is calculated based on the number of children, where the person lives, and marital status. In contrast, a minimum wage is decided based on the overall economic condition.

Currently, the Indian government’s minimum wage for unskilled labour is US$210.17, which is approximately INR 17,494 on average. Different states in India have different minimum wages, with Delhi and Kerala having the highest daily minimum wage pay.

The government of India is seeking international labour organisation help for the implementation of the living wage in India. A team of delegates approved the ILO for the data collection and the positive and negative effects of the living wage on people.

According to the government, the living wage system will help people escape multidimensional poverty. Recently, Niti Ayog presented a report in which they claimed 24.8 crores emerged out of poverty in 9 years, which came out fake at many points, and multidimensional poverty is the factor in which Niti Ayog failed miserably.

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