Increase minimum wages in India to 70 Rs /hour ($ 1 /hour)

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Minimum wages in India are very low. We are not calculating the wages on a hourly basis. Even China has a minimum hourly wage of 2.75 $/hour. Our minimum hourly wage is 0.50 $/hour, if computed properly.

If we increase the minimum wages, poor people will benefit. The construction workers can send their children to schools. And some of those children can become professionals. Raising the minimum wages is one way to free the poor from bonded labour.

Construction workers and other minimum wage labourers should be paid directly into their Jan Dhan bank accounts on a bi-weekly basis. Salaries should not be paid in cash.

Increasing the minimum wages will also increase the velocity of money in India. With more velocity, more people will get to see more money. And in general, higher velocity is good for the economy.

Summarising, my suggestion is three fold:

  1. Increase the minimum wages to 70 Rs/hour (1 $/hour).
  2. Calculate minimum wages as hourly rate and not monthly wages.
  3. Directly credit salary to poor people in the Jan Dhan account (No cash transaction for salary)


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