Implementation of National Floor Level Minimum Wage (NFLMW)

Implementation of National Floor Level Minimum Wage (NFLMW)

In order to have a uniform wage structure and to reduce the disparity in minimum wages across the country, the concept of National Floor Level Minimum Wage (NFLMW) was mooted on the basis of the recommendations of the National Commission on Rural Labour (NCRL) in 1991. Keeping in view the recommendation of NCRL and taking into account the rise in price indices, the NFLMW was initially fixed at Rs.35/- per day in 1996.

On the basis of increase in the Consumer Price Index (Industrial Worker), the Central Government has revised the NFLMW from time to time. The NFLMW was Rs.80/- w. e. f. 01.09.2007. The same was raised to Rs.100/- from 01.11.2009 and again raised to Rs.115/- with effect from 01.04.2011.

Since NFLMW is a non-statutory measure, the Ministry of Labour & Employment has requested to all the States/UT Governments that in none of the scheduled employments, the minimum wages should be less than the NFLMW. At present, there is also a proposal to amend the Minimum Wages Act, 1948 to make the NFLMW statutory.