SAW Project
Setting Adequate Wages - India
Context
Adequate frameworks of wage fixation, including statutory minimum wages and collective bargaining of wages, offer a great potential to address the challenge of low pay in India.
However:
- 62 million workers earn below the minimum wage, the majority of whom are women.
- The occurrence of informality in India represents one of the significant challenges for the compliance with minimum wages, both in the agricultural and non-agricultural sectors.
In this context, the SAW project in India supports wage setting mechanisms in making a stronger use of data and evidence on the needs of workers and their families and economic factors. Additionally, the project identifies national factors and conditions that enable wage increases, and supports measures to raise productivity in selected supply chains. Finally, the project contributes to raise awareness on living wages, provides technical assistance to national constituents in this regard, and engages with existing living wage initiatives in the country to promote alignment with ILO living wage principles.
The SAW project at a glance
Objective
Promoting wages that ensure a just share of the fruits of progress to all
Timeframe
From October 2022 to December 2026
Project strategy
Pillar 1: Support wage setting mechanisms
Minimum wage settings are based on relevant indicators of the needs of workers and their families and economic factors.
Activities:
- Technical support to the Minimum Wage Advisory Board in selected states through studies, trainings and evidence-based dialogues to set minimum wages at an adequate level.
Social partners use information on the needs of workers and their families for meaningful and informed collective bargaining of wages.
Activities:
- Rapid assessment of collective bargaining of wages and roadmap to strengthen collective bargaining of wages in selected states.
- Trainings, roundtables and workshops on collective bargaining of wages to promote understanding and build capacity to negotiate adequate wages.
Compliance with statutory and negotiated wages is improved.
Activities:
- Studies on compliance with statutory minimum wages andcollective bargained wagerates in India, differentiating byterritories, sectors, populationgroups, etc.
- Information campaign topromote compliance withminimum wage rates.
Pillar 2: Enable wage growth
Productivity and wages are improved in enterprises in selected supply chains.
Activities:
- Assessment and training about the factors that condition productivity and wage improvements at the economic unit level in selected supply chains.
Macro factors and institutions that support and enable rising wages are assessed.
Activities:
- Technical analyses of economic factors contributing to wage growth.
- Workshops to disseminate findings from research on macro factors affecting wage growth and provide technical trainings based on this evidence.
Pillar 3: Engage with living wage initiatives
Governments and social partners have a better understanding of living wages.
Activities:
- Develop and disseminate the ILO methodology to estimate living wages.
International and national living wage initiatives are informed about the needs of workers and their families and economic factors.
Activities:
- Engage with existing living wage initiatives to promote alignment with ILO living wage principles.
For further information, please contact:
Mr Ankur Dalal
National Project Coordinator
Email: [email protected]
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