What is the Minimum Wage?
The ‘Minimum Wage’ is the minimum amount that an employer is bound to pay an employee as the salary for their services. Usually, it is calculated on a per-hour basis and it is set by the legal authority that oversees the local employment laws.
The legal minimum wage in India in 2021 is ₹176 (~$2.80) per day which comes to ₹4,576 (~$62) per month. Although it is the minimum wage, it does vary depending upon the state and the union territories as well as the local employment laws.
The main advantage of legal minimum wage is that it helps avoid exploitation of employees, helps improve the standard of living, reduces poverty as well as boosts the morale of employees.