NATIONAL LAW UNIVERSITY, BHOPAL

SYNOPSIS OF ECONOMICS – I

TOPIC: Minimum Wage Rate and its role in

Regional Imbalances in India
Submitted by:- Submitted to:-
Prabhav Sharma Prof. Rajesh Kumar Gautam
2019B.A.LL.B.28
Divyesh Sharma
2019B.A.LL.B.45

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Introduction
Minimum wage rate provides fixing of minimum rates of wages in certain employment.
Whereas it is expedient to provide for fixing minimum rates of wages in certain
employment.1A Minimum wage is the lowest payment that could be paid by the employers
legally to their workers. Payment against workers labor which is less than the minimum wage
rate will lead to the legal liability as provided under The Minimum wages Act, 1948.

Minimum wages Act,1948 intended to achieve the object of doing social justice to the
workers employed in various employments by prescribing minimum rates of wages for them.

India is ahuge and diverse country comprising 29 states and 7 union territories. There are
regional variations in economic development and level of welfare which leads to disparity
between highest and lowest average daily wage between various states. For ex., according to
NSSO report on nominal regular wages of urban area the minimum wages in Haryana is 783
while in Gujarat is 320. Such similarity can be seen in rural wage rate of Jharkhand which is
485 and of Karnataka is 219.

Statement of Problem
The disparity between highest and lowest average daily wage across states is widening over
time. The ratio of highest state wages to lowest state wages for regular work has increased
from 1.5 in 1993-94 to 2.1 in 2011-12 which creates an anomic situation between workers of
various states.

Objectives

 To understand the basic concepts of minimum wage rate.

 To analyse the role of minimum wage rate in India.
 To understand government policies to regulate minimum wage rate in India.
 To understand causes of regional imbalance due to minimum wage rate in India
 To provide a solution to deal with the problem of minimum wage rate.

1
The Minimum Wages Act, 1948.

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Hypothesis
The creation of regional imbalances in India is due to weak formulation of policies by central
government and lack of a regulation to cope up with various wage rates of different states.
We hypothise that if stringent rules will be imposed by the central government that will led to
lessening the gap among various wage rates in different states in India.

Review of Literature

Method of Study
Doctrinal Method of research is used while making this project.

Chapterization

 Introduction
 Concept of minimum wage rate
 Trends of minimum wage rate in India
 Government policies for minimum wage rate
 International labour organization policies to regulate minimum wage rate
 Causes of regional imbalance of minimum wage rate in India.
 Solution to curb regional imbalances in India.
 Conclusion

Bibliography

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