India is planning to replace the minimum wage with a living wage by 2025.
The International Labour Organization (ILO) has been sought for technical assistance in creating a framework for estimating and operationalizing these wages.
Living wages are considered a minimum income necessary for workers to meet their basic needs, including housing, food, healthcare, education, and clothing.
These living wages will be higher than the current basic minimum wages.
The ILO agreed on this reform during their 350th governing body meeting in Geneva.
There are over 500 million workers in India, with 90% in the unorganized sector.
The national wage floor, not revised since 2017, is not binding on states, leading to varying minimum wages across states.
The Code on Wages, passed in 2019, proposes a wage floor that will be binding on all states once implemented.
India is seeking help from the ILO for capacity building, data collection, and evidence of positive economic outcomes resulting from the implementation of living wages.
Labour secretary Sumita Dawra proposed that the ILO should consider health, education, and standard of living as key indicators for defining living wages in developing countries.