What is ‘living wage’ framework ? UPSC Daily Current

The Government of India is working on introducing a ‘living wage’ framework, which is likely to improve female workforce participation, particularly among low-income women. The plan aims to tackle low wages and high costs that currently discourage women from joining or staying in the formal workforce.

Key Points from the Article:

Low Wages Holding Back Women

• 54% of blue- and grey-collar women employees are unhappy with their pay.
• 80% earn less than ₹20,000/month, making formal employment unattractive.
• Income level is a make-or-break factor for women entering or staying in jobs.

Cost Burden and Responsibilities:

• Women face higher entry costs into the workforce, such as transportation and childcare.
• Low pay + high costs push women out of work or discourage entry.

Minimum Living Wage in Focus:

• Government is studying the idea of a “living wage”—a wage that covers minimum decent living including food, clothing, housing, education, and healthcare.
• The International Labour Organization (ILO) has defined this standard.
• A report was submitted to the Labour Ministry on July 24.

Survey Findings by Quess Corp:

• Survey of 10,000+ women in 11 cities:

• • 80% earn less than Rs 20,000/month.
  • Only 21% of women earn more than Rs 25,000/month.
  • Women face unequal hiring practices; they account for only 27% of job interviews.
  • Sectors like IT, manufacturing, and healthcare show promise for higher wages.

Gender Pay Gap & Retirement Benefits:

• Women are often excluded from social security and retirement benefits.
• A “living wage” would help formalize women’s jobs and improve their access to benefits.

Long-Term Impact:

• A living wage could:

• • Enhance female labour force participation rate (LFPR) (currently just 37% in India).
  • Improve productivity, retention, and economic equity.