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More than minimum: Why govt is mulling ‘living wage', and what it could mean for women at work
More than minimum: Why govt is mulling ‘living wage', and what it could mean for women at work

Indian Express

time2 days ago

  • Business
  • Indian Express

More than minimum: Why govt is mulling ‘living wage', and what it could mean for women at work

Low wages are holding women back from formal employment – 54 per cent of blue- and grey-collar women employees are unhappy with their pay and 80 per cent saving nothing or less than Rs 2,000 per month, according to a new report. 'Income is a make-or-break factor driving women's exit from the blue-grey collar workforce,' the report by Quess Corp, India's largest staffing firm, and the Udaiti Foundation, said. 'Women already face steep opportunity costs to join the workforce. Inadequate wages that ignore local realities simply drive them out,' it added, flagging a 'clear gap between minimum wage and living wage'. The need to align minimum wage with real living costs has also gained traction among top policymakers. The Union Ministry of Labour and Employment, for instance, is discussing the concept of a living wage, which factors in expenditure on health and education that is currently excluded from minimum wage calculations. According to Vandana Gurnani, Labour and Employment Secretary, accounting for health- and education-related expenses in wage standards could 'reduce the opportunity cost' women face when entering formal employment. Low pay, high costs push women out The report found that blue- and grey-collar women employees earn just 70 per cent of what men do, and that low wages, combined with high opportunity costs like unpaid caregiving, time lost to commuting, or the cost of migration, make it difficult for women to 'sustain at work'. Based on a survey of over 10,000 current and around 1,600 former women employees at Quess, it said workers in peri-urban zones, which host significant manufacturing activity, often have minimum wages that lag behind urban benchmarks, despite high living costs. 'Costs are higher in Tier 1 cities, but 1 in 5 women earn below INR 20,000, which is typically the stipulated minimum wage… Those earning above INR 20,000 are 21% less likely to drop out in the near term, showing that better pay supports retention,' it said. Quess provides staffing and outsourcing services to over 3,000 clients across sectors like retail, IT, manufacturing, and banking. At the launch of the report on July 24, Gurnani said, 'Conceptually, it's very good if you go beyond nutrition, housing, and clothing, which are currently counted for minimum wage, to expenditure on health and education, which is proposed.' 'From a women's perspective, it is very important because the care model, like childcare, is going to cost them. (Inclusion of health and education) will reduce the opportunity cost that women face when they come out to work,' she said. Gurnani added that the ministry is figuring out how to 'do this in a diverse setting because things vary from state to state'. She also highlighted the need for a 'social dialogue' with employers and employees. 'So, it is currently at that stage. It is not happening today, but I am glad that we started thinking about it,' she said. For women, wages only part of the problem While living wage standards would benefit all workers, the impact could be more significant for women, who face higher opportunity costs. This is particularly relevant given India's low female labour force participation rate (LFPR) – just 32 per cent for women above 15 years as of June, compared to 77.1 per cent for men, according to the Periodic Labour Force Survey (PLFS). Several economists argue that India's female LFPR must cross the 50 per cent mark if the country is to achieve developed economy status. In addition to low wages, women workers also contend with poor work culture, limited access to safe and affordable housing, and mobility constraints. In some states, regulatory barriers add to the challenge. 'There are 54 laws that actually prohibit women from participating in the workforce. Among them are the night shift laws, which are now being removed state by state,' said Pooja Sharma Goyal, founding CEO of Udaiti Foundation. 'What happens when you dismantle night shift laws is that the private company becomes responsible for ensuring a woman's safety on her way home at night. That includes providing transport. Now, many large companies are able to provide that, while the small ones are not. Those are some of the nuances we need to start thinking about,' she told The Indian Express. Industrial hubs draw more women According to Guruprasad Srinivasan, CEO of Quess Corp, a state's industrial base – particularly its manufacturing strength – is a key driver of higher female workforce participation. 'Tamil Nadu hosts many large, modern electronics and manufacturing units, followed by states like Karnataka and Maharashtra. With higher workforce participation in manufacturing, these states naturally absorb more women workers,' Srinivasan said. 'High finger dexterity and hand-to-eye coordination are areas where women tend to do well. We test these skills, and more women pass than men. So naturally, there's demand for them in sectors like electronics and auto manufacturing. The semiconductors sector is another space to watch,' he said. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More

Over 50% entry-level women in blue-grey jobs plan to quit within a year, 54% unhappy with pay, reveals study
Over 50% entry-level women in blue-grey jobs plan to quit within a year, 54% unhappy with pay, reveals study

Mint

time5 days ago

  • Business
  • Mint

Over 50% entry-level women in blue-grey jobs plan to quit within a year, 54% unhappy with pay, reveals study

At least 52% of women with less than one year of experience in India's blue-grey-collar workforce plan to quit within 12 months, a new survey has found. The attrition rate, however, drops sharply to 3 per cent among those who stay in their jobs for more than two years, from 52% among those who have been employed for less than a year, the report said. It added that 54 per cent of women who are currently working are unhappy with their pay, and 80% save less than ₹ 2,000/month. The findings in the State of Women in the Blue-Grey Collar Workforce-2025, a data-driven report and policy brief offering actionable solutions to strengthen women's participation in one of India's fastest-growing employment segments by Udaiti Foundation, in partnership with Quess Corp Limited. 54 per cent of women who are currently working are unhappy with pay, and 80% save less than ₹ 2,000/month, it added, The blue-grey collar workforce is an emerging term that blends elements of both blue-collar and grey-collar workers. The report cites multiple sources that suggest that India needs to add 7-10 million non-farm jobs a year to achieve the goal of becoming a developed nation or 'Viksit Bharat' by 2047. A large share of these non-farm jobs are blue-collar roles, which form the backbone of India's economy, it says. The findings were launched at an event held in New Delhi on Thursday. Vandana Gurnani, Secretary, Ministry of Labour and Employment, S Krishnan, Secretary, Ministry of Electronics and Communication, and Rajkamal Vempati, Group Executive and Head of Human Resources, Axis Bank, attended the event Despite women's overall share in blue-grey collar roles rising from 16 per cent in FY20-21 to 19 per cent in FY23-24, as per the PLFS Annual Report, the cohort faces high early attrition rates that threaten productivity, continuity, and India's ability to achieve its $30 trillion economy goal by 2047,' the report said. 'This report reveals a tremendous opportunity for India to unlock its full economic potential. We have demonstrated that we can open doors for women, and the unlock lies in creating systems that enable them to thrive and grow. Women are not leaving because they lack capability; they are leaving because we have not yet built the infrastructure and designed workplaces for their success,' Pooja Goyal, Founding CEO of The Udaiti Foundation, said. The report identifies five key challenge areas from the survey that, if addressed, can significantly improve women's retention: higher incomes, safer and more reliable mobility, improved workplace infrastructure, clearer career growth pathways, and more inclusive, supportive work culture. Income is a key challenge: 54% of women who are currently working are unhappy with pay, and 80% save less than ₹ 2,000/month. ● Those earning above ₹ 20,000 are 21% less likely to drop out in the near term— showing that better pay supports retention. Mobility barriers: 57% of women respondents who are currently working face transport challenges; 11% feel unsafe while commuting, especially during night shifts. ● One in five women who have left the workforce said they will return to work if the workplace were closer to home. ● Workplace safety and infrastructure challenges: 22% of women feel unsafe at work, with this figure jumping to 33% where basic safety measures like CCTV and lighting are absent. Career growth: 21% of women respondents cite lack of growth as a reason to leave their jobs; postgraduate women with more than a year's tenure are 3x more likely to exit if the growth pathway is unclear. Limited workplace flexibility: 28% of women report difficult hours and demanding work environments. One-third of them cite lack of flexibility as the main issue. ●Additionally, many field-facing roles across sectors commonly lack formal grievance redressal systems, underscoring the need to build open and responsive channels to hear women employees out. Infrastructure gaps fuel safety concerns: 22% of women feel unsafe at work — a number that spikes to 33% in locations lacking basic infrastructure (e.g., CCTV, lighting). ●This is especially stark in FMCG, education, IT/ITeS, and manufacturing. Women are not leaving because they lack capability; they are leaving because we have not yet built the infrastructure and designed workplaces for their success.

Union Minister Mansukh Mandaviya chairs meeting of State Labour and Industry Ministers on employment linked incentive scheme
Union Minister Mansukh Mandaviya chairs meeting of State Labour and Industry Ministers on employment linked incentive scheme

Canada News.Net

time15-07-2025

  • Business
  • Canada News.Net

Union Minister Mansukh Mandaviya chairs meeting of State Labour and Industry Ministers on employment linked incentive scheme

New Delhi [India], July 14 (ANI): A high-level virtual meeting of State Labour Ministers and State Industry Ministers was convened under the chairpersonship of the Union Minister of Labour & Employment and Youth Affairs and Sports, Mansukh Mandaviya in New Delhi today, informed a press release from Ministry of Labour & Employment. The release stated the objective of the meeting which was to deliberate on the implementation modalities and explore collaborative strategies for the effective rollout of the Employment Linked Incentive (ELI) Scheme. Addressing the gathering, Dr. Mandaviya, stated that the ELI Scheme represents the second step after the PLI Scheme in the direction of building an Atmanirbhar Bharat. He stated that the scheme will provide financial support to employers, enabling them to generate additional employment, particularly for the youth and described the initiative as a win-win for both employers and job seekers. Dr. Mandaviya cited KLEMS data published by the Reserve Bank of India (RBI), highlighting that over 17 crore employment opportunities were generated during the last decade. This, he noted, is a reflection of the significant economic progress made by the country, particularly driven by robust growth in sectors such as construction, manufacturing, and services. He emphasized that this momentum must be sustained and further accelerated through schemes like ELI, which are designed to create quality jobs, deepen formalization, and support inclusive development, said the release. 'Labour and industry are two sides of the same coin,' the Minister said, adding that both must work in close coordination for the greater good of the nation's workforce and economy. He assured participants that procedural formalities under the scheme have been kept simple to ensure ease of access and encourage wide participation. Union Minister also urged State Ministers to actively promote the scheme through media briefings, television and radio interviews, and other outreach platforms. He emphasized the importance of comprehensive planning and awareness-building at the grassroots level. As per the PIB issued, the Secretary (L&E), Vandana Gurnani welcomed all participants and highlighted that the scheme is designed to support employment generation, improve employability, and extend social security across all sectors, particularly focusing on the manufacturing sector. Vandana Gurnani informed that with a total outlay of Rs. 99,446 crore, the ELI Scheme aims to create over 3.5 crore jobs across the country over a two-year period. She further emphasised that sustainable employment is a key goal of the scheme, as the first instalment of incentives will be disbursed only after six months of continuous employment. Director (L&E), delivered a presentation outlining the scheme's framework. Labour and Industry Ministers from Gujarat, Assam, Bihar, Chhattisgarh, Arunachal Pradesh, Madhya Pradesh, Jharkhand and several other states appreciated the initiative and assured their full cooperation in ensuring its successful implementation across their respective regions. Acknowledging the scheme's potential to boost employment opportunities, the Ministers emphasised the importance of collaborative efforts between the Centre and States. They also proposed that dedicated events, awareness programmes, and conferences may be organised at the district level in collaboration with state governments for local industries/industry chambers/industry associations etc. These efforts would help disseminate comprehensive information about the scheme, promote its adoption, and ensure that its benefits reach the grassroots level and last-mile beneficiaries. During the discussions, Dr. Mandaviya emphasised that States may consider linking of their respective employment-oriented schemes with the objectives of the ELI Scheme. (ANI)

Union Minister Mansukh Mandaviya chairs meeting of State Labour and Industry Ministers on employment linked incentive scheme
Union Minister Mansukh Mandaviya chairs meeting of State Labour and Industry Ministers on employment linked incentive scheme

India Gazette

time14-07-2025

  • Business
  • India Gazette

Union Minister Mansukh Mandaviya chairs meeting of State Labour and Industry Ministers on employment linked incentive scheme

New Delhi [India], July 14 (ANI): A high-level virtual meeting of State Labour Ministers and State Industry Ministers was convened under the chairpersonship of the Union Minister of Labour & Employment and Youth Affairs and Sports, Mansukh Mandaviya in New Delhi today, informed a press release from Ministry of Labour & Employment. The release stated the objective of the meeting which was to deliberate on the implementation modalities and explore collaborative strategies for the effective rollout of the Employment Linked Incentive (ELI) Scheme. Addressing the gathering, Dr. Mandaviya, stated that the ELI Scheme represents the second step after the PLI Scheme in the direction of building an Atmanirbhar Bharat. He stated that the scheme will provide financial support to employers, enabling them to generate additional employment, particularly for the youth and described the initiative as a win-win for both employers and job seekers. Dr. Mandaviya cited KLEMS data published by the Reserve Bank of India (RBI), highlighting that over 17 crore employment opportunities were generated during the last decade. This, he noted, is a reflection of the significant economic progress made by the country, particularly driven by robust growth in sectors such as construction, manufacturing, and services. He emphasized that this momentum must be sustained and further accelerated through schemes like ELI, which are designed to create quality jobs, deepen formalization, and support inclusive development, said the release. 'Labour and industry are two sides of the same coin,' the Minister said, adding that both must work in close coordination for the greater good of the nation's workforce and economy. He assured participants that procedural formalities under the scheme have been kept simple to ensure ease of access and encourage wide participation. Union Minister also urged State Ministers to actively promote the scheme through media briefings, television and radio interviews, and other outreach platforms. He emphasized the importance of comprehensive planning and awareness-building at the grassroots level. As per the PIB issued, the Secretary (L&E), Vandana Gurnani welcomed all participants and highlighted that the scheme is designed to support employment generation, improve employability, and extend social security across all sectors, particularly focusing on the manufacturing sector. Vandana Gurnani informed that with a total outlay of Rs. 99,446 crore, the ELI Scheme aims to create over 3.5 crore jobs across the country over a two-year period. She further emphasised that sustainable employment is a key goal of the scheme, as the first instalment of incentives will be disbursed only after six months of continuous employment. Director (L&E), delivered a presentation outlining the scheme's framework. Labour and Industry Ministers from Gujarat, Assam, Bihar, Chhattisgarh, Arunachal Pradesh, Madhya Pradesh, Jharkhand and several other states appreciated the initiative and assured their full cooperation in ensuring its successful implementation across their respective regions. Acknowledging the scheme's potential to boost employment opportunities, the Ministers emphasised the importance of collaborative efforts between the Centre and States. They also proposed that dedicated events, awareness programmes, and conferences may be organised at the district level in collaboration with state governments for local industries/industry chambers/industry associations etc. These efforts would help disseminate comprehensive information about the scheme, promote its adoption, and ensure that its benefits reach the grassroots level and last-mile beneficiaries. During the discussions, Dr. Mandaviya emphasised that States may consider linking of their respective employment-oriented schemes with the objectives of the ELI Scheme. (ANI)

Labour secy urges GCCs to seize job creation opportunity
Labour secy urges GCCs to seize job creation opportunity

Time of India

time14-07-2025

  • Business
  • Time of India

Labour secy urges GCCs to seize job creation opportunity

Labour and employment secretary Vandana Gurnani urged the global capability centres (GCCs) to actively participate in the Employment Linked Incentive scheme of the government, saying it holds substantial potential for job creation and will benefit both the employers and the employees. "There are very substantive benefits available, not just to employees, but to employers," she said, expressing hope that the new scheme, which comes into effect from August 1, will take off in a big way and not meet the same fate as the PM Internship Scheme with respect to GCCs. "From the employer perspective, it will reduce the marginal cost of hiring," Gurnani said, speaking at the GCC Business Summit organised by the Confederation of Indian Industry (CII) on Monday. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sulaymaniyah: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Citing the success of similar initiatives in Singapore, Malaysia, Australia, Germany and Turkiye, she said they led to sustained employment as well as wage increase. Gurnani assured that the scheme design is very simple and there is no elaborate registration process involved. Live Events

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