The Madhya Pradesh government has recently issued orders to increase the minimum wage for 21 lakh workers of the state. This decision has been taken after the decision of the Indore High Court, in which instructions were given to the Labor Department to fix separate salary rates for workers working in various industries. With this increase, workers will get a profit of Rs 1625 to Rs 2434 per month, which will be applicable from 1 March 2025.
There has been a long process behind this decision. In November 2019, the Minimum Wage Advisory Board recommended a 25% increase in salary of workers, which was implemented from 1 April 2024. However, the Madhya Pradesh Textile Mills Association challenged the notification in the High Court, after which the court had stayed. The stay was later removed on 3 December 2024 and on 10 February 2025, the High Court gave its final verdict.
Apart from this scheme, the Madhya Pradesh government has also issued a new policy for more than 32 thousand contract employees under NHM. This policy will benefit about 1.5 lakh people, including families of employees.
Minimum wage hike: major highlights
| Description | Expansion of details |
| Beneficiary | 21 lakh workers will get benefit. |
| Salary increment | Increase from 1625 to Rs 2434 per month. |
| Applied date | Will be applicable from 1 March 2025. |
| Court decision | Decision taken after the decision of Indore High Court. |
| last rise | The 25% increase was recommended in November 2019. |
| Policy for contract employees | New policy for more than 32 thousand contract employees. |
Minimum wage increase process
The process of minimum wage increase includes several stages. First, the minimum wage advisory board recommended an increase in salary. Subsequently, the state government decided to implement it. However, some industry organizations challenged it in court, after which the court set up. Later, this growth could apply only after the stay removed.
Major points of minimum wage increase
- Rate of salary hike: Workers will get an increase of Rs 1625 to Rs 2434 per month.
- Beneficiary Workers: This decision will benefit 21 lakh workers.
- Court’s decision: This decision was taken after the decision of Indore High Court.
- Last growth: 25% increase in November 2019 was recommended, which came into force from 1 April 2024.
- Station of stay: The court imposed a stay after the challenge of the Madhya Pradesh Textile Mills Association, which was later removed.
New policy for contract employees
The Madhya Pradesh government has issued a new policy for contract employees under NHM. This policy will benefit more than 32 thousand contract employees, which will benefit about 1.5 lakh people directly or indirectly. This policy includes many important provisions:
- Right to termination of service: The right to terminate the service of contract employees will only be with the Mission Director NHM.
- Salary hike: On the basis of consumer price index (CPI), there will be the benefit of regular increment.
- Maternity leave: Pregnant women will be allowed to take charge after six weeks of delivery at the time of appointment.
- Paternity leave: Provisions for paternity leave for contract employees have also been implemented.
- Transfer Rights: The District Health Committee has been given the right to transfer to the district.
- Compassionate appointment and X-Grassia aid: Provisions of compassionate appointment and X-Grassia aid have been made to provide assistance to the family under casual circumstances.
- Special holiday: According to the rules of the General Administration Department, special leave facility will also be provided to contract employees.
- Salary during investigation: If investigation is going on against an employee, then he will be given 50% salary.
- Online Transfer Management System: Online transfer management system has been implemented to make transfer processes more transparent.
Importance of minimum wage increase
The minimum wage hike will provide financial strength to the workers. This decision will help improve the standard of living of workers and give them an opportunity to live a better life. Apart from this, this growth will also contribute to economic development, as they will be able to consume more due to increasing income of workers, which will increase demand in the market.
Benefits of minimum wage increase
- Economic stability: Workers will get economic stability.
- Improvement in standard of living: The standard of living of workers will improve.
- Economic Development: This growth will also contribute to economic development.
- Demand in the market: Increased consumption will increase demand in the market.
- Workers ‘morale: Workers’ morale will increase, which will increase productivity.
Minimum wage increase challenges
Although the minimum wage increase is a positive step, there are some challenges with it. Economic burden on industries may increase, causing them to increase their production costs. Apart from this, the problem of arrears is also a major challenge, as the department has not yet given any clear instructions about it.
Disclaimer: This article only provides general information and does not have any type of financial or legal advice. For detailed and updated information about the minimum wage hike in Madhya Pradesh, please contact official government sources or relevant officers.
Sourcehts Kers-minimum-wage-Dage-D-de-SISUED-IMOULL-Com-in-CCOMANT-From-March-04-731977
