Entry-level jobs could soon pay Rs. 18000 all across India and that could be a problem
Advertisement
Aug 2, 2017, 23:14 IST
While lay-offs have become the norm especially in futuristic sectors like IT, the Union cabinet has cleared the labor code on minimum wages, creating a minimum wage barrier of Rs. 18,000/-
With the implementation of this bill, any state is bound by law to not pay a lesser amount. This translates to that the minimum wage for someone working in a metro city will be the same as that of a person in a small town. Likewise a B.com graduate and a 10th pass delivery boy of ane-commerce company will get the same minimum wage at the entry level.
The economics of wages is largely dependent on demand and supply of talent and the cost of living. It is unfair to apply a universal minimum wage across different states with varying demographics.
The bill if passed in the parliament, will place considerable burden on the employers as they will not be able to pass on this sudden rise in cost to customers. This entry barrier will mean that both the businesses will not be able to mushroom or be competitive and it will be highly likely that these entry level jobs will move back to the informal sector. Across sectors like automobile, construction and real estate, e-commerce, logistics, educational services, FMCG , FMCD, healthcare and pharma, hospitality, industrial manufacturing and allied sectors, media and entertainment and retail and telecom, a fixed salary could make companies more selective and even cause them to hire more interns than ever before.
At a time when formal job creation should be the only agenda that drives any labour reform in this country, the labor code could make industries automating at a faster rate thereby further impacting job creation.
The impact of this will be the highest at the entry level jobs because that is where the salary is less than Rs. 18,000/-.
Following are the jobs that are likely to get impacted and their current median salaries:
Source: TeamLease Staffing Solutions
Advertisement
With the implementation of this bill, any state is bound by law to not pay a lesser amount. This translates to that the minimum wage for someone working in a metro city will be the same as that of a person in a small town. Likewise a B.com graduate and a 10th pass delivery boy of an
Also Read
>Here’s how Tech Mahindra is using start-ups to ensure retention of their best IT employees
While lay-offs have become the norm especially in futuristic sectors like IT, the Union cabinet has cleared the labor code on minimum wages, creating a minimum wage barrier of Rs. 18,000/-
With the implementation of this bill, any state is bound by law to not pay a lesser amount. This translates to that the minimum wage for someone working in a metro city will be the same as that of a person in a small town. Likewise, a B.com graduate and a 10th pass delivery boy of an e-commerce company will get the same minimum wage at the entry level.
The bill if passed in the parliament, will place considerable burden on the employers as they will not be able to pass on this sudden rise in cost to customers. This entry barrier will mean that both the businesses will not be able to mushroom or be competitive and it will be highly likely that these entry level jobs will move back to the informal sector.
Also Read
>Here’s why Harvard University just started a course on Non-profit Management in Delhi
While lay-offs have become the norm especially in futuristic sectors like IT, the Union cabinet has cleared the labor code on minimum wages, creating a minimum wage barrier of Rs. 18,000/-
With the implementation of this bill, any state is bound by law to not pay a lesser amount. This translates to that the minimum wage for someone working in a metro city will be the same as that of a person in a small town. Likewise, a B.com graduate and a 10th pass delivery boy of an e-commerce company will get the same minimum wage at the entry level.
Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More
At a time when formal job creation should be the only agenda that drives any labour reform in this country, the labor code could make industries automating at a faster rate thereby further impacting job creation.
Also Read
>Shuttl is trying to be the safest commute option for the working class
While lay-offs have become the norm especially in futuristic sectors like IT, the Union cabinet has cleared the labor code on minimum wages, creating a minimum wage barrier of Rs. 18,000/-
With the implementation of this bill, any state is bound by law to not pay a lesser amount. This translates to that the minimum wage for someone working in a metro city will be the same as that of a person in a small town. Likewise, a B.com graduate and a 10th pass delivery boy of an e-commerce company will get the same minimum wage at the entry level.
The impact of this will be the highest at the entry level jobs because that is where the salary is less than Rs. 18,000/-.
Advertisement
Job Profile | Median Salary (per month) | |
Automobile & Allied Industry | ||
Mechanic | Rs.9,000 – Rs.12,000 | |
Operator | Rs.8,000 – Rs.10,000 | |
Service Supervisor | Rs.17,000 – Rs.22,000 | |
FMCD | ||
Loader and Picker | Rs.8,500 – Rs.10,000 | |
Packing Assistant | Rs.8,000 – Rs.10,000 | |
Wireman Control Panel | Rs.10,000 – Rs.12,000 | |
Module Assembly Technician | Rs.10,500 – Rs.12,500 | |
Healthcare & Pharmaceuticals | ||
Medical lab Technician | Rs.12,500 – Rs.15,500 | |
Diet Assistant | Rs.7,500 – Rs.10,500 | |
General Duty Assistant | Rs.8,000 – Rs.10,000 | |
Field Service Executive | Rs.10,500 – Rs.12,500 | |
Media & Entertainment | ||
Cable Operator | Rs.11,000 – Rs.13,000 | |
Technician | Rs.9,000 – Rs.11,000 | |
Cable Boy | Rs.7,000 – Rs.9,000 | |
IM&A | ||
Admin Helper | Rs.7,500 – Rs.9,500 | |
Telephone Operator | Rs.9,500 – Rs.11,500 |
{{}}
Here’s how Tech Mahindra is using start-ups to ensure retention of their best IT employees
While lay-offs have become the norm especially in futuristic sectors like IT, the Union cabinet has cleared the labor code on minimum wages, creating a minimum wage barrier of Rs. 18,000/-
With the implementation of this bill, any state is bound by law to not pay a lesser amount. This translates to that the minimum wage for someone working in a metro city will be the same as that of a person in a small town. Likewise, a B.com graduate and a 10th pass delivery boy of an e-commerce company will get the same minimum wage at the entry level.
Here’s why Harvard University just started a course on Non-profit Management in Delhi
While lay-offs have become the norm especially in futuristic sectors like IT, the Union cabinet has cleared the labor code on minimum wages, creating a minimum wage barrier of Rs. 18,000/-
With the implementation of this bill, any state is bound by law to not pay a lesser amount. This translates to that the minimum wage for someone working in a metro city will be the same as that of a person in a small town. Likewise, a B.com graduate and a 10th pass delivery boy of an e-commerce company will get the same minimum wage at the entry level.
Shuttl is trying to be the safest commute option for the working class
While lay-offs have become the norm especially in futuristic sectors like IT, the Union cabinet has cleared the labor code on minimum wages, creating a minimum wage barrier of Rs. 18,000/-
With the implementation of this bill, any state is bound by law to not pay a lesser amount. This translates to that the minimum wage for someone working in a metro city will be the same as that of a person in a small town. Likewise, a B.com graduate and a 10th pass delivery boy of an e-commerce company will get the same minimum wage at the entry level.
Advertisement
Latest Stories
- Rupee rises 17 paise to close at 83.33 against US dollar
- More Indians are travelling than ever before, as 97 mn passengers took flight in Q1 2024: Report
- IMD forcasts heatwave for few states in next 5 days
- IIFL Securities Q4 profit more than doubles to ₹180 crore
- Global economy to grow 2.7% in 2024 as major economies avoid severe downturn: UN report
Trending News
Advertisement