Paving the Way for Fair Wages: Insights from My First Expert Meeting
India is on the cusp of a transformative shift in its wage policy, with plans to replace the current minimum wage system with a living wage by 2025 [i]. This significant move follows the government’s decision to seek technical assistance from the International Labour Organization (ILO) to develop a comprehensive framework for estimating and implementing living wages across the country. The change comes after the ILO endorsed the living wage concept earlier this year, following a Meeting of Experts on wage policies in February, which was later ratified by the ILO’s governing body on 13th March’2024 [ii].
This marks a pivotal moment in the nation’s approach to wage structures, reflecting a broader commitment to ensuring that workers are compensated not just for survival, but with wages that allow them to live with dignity.
In August, I had the privilege of attending my first expert meeting on living wages, co-organized by the FLAME University, UN Global Compact Network India, and the WageIndicator Foundation, the event brought together academic experts, corporate leaders, trade unions, and representatives from the International Labour Organization (ILO) to discuss the future of wage systems in India. Held in Pune, the event brought together professionals from diverse sectors committed to addressing wage challenges faced by workers across the country.
The primary focus of the meeting was to introduce the concept of living wages and explore strategies to bridge the gap between the existing minimum wage and wages that allow workers to live with dignity. From the outset, the atmosphere was charged with anticipation and readiness for change. Participants engaged deeply, eager to share knowledge, debate solutions, and explore how shifting to a living wage framework could transform industries and foster more inclusive and sustainable workplaces.
The Vision of Living Wages
Living wages represent more than just fair pay—they signify a broader commitment to human dignity, economic justice, and sustainable development. The discussions at the expert meeting emphasized that while public commitment to living wages is an achievable first step, it’s important to recognize the complexities involved in turning that commitment into reality. Implementing living wages requires overcoming challenges such as restructuring business models and addressing wage disparities across sectors. Despite these challenges, the consensus was clear: living wages must be viewed as a necessity rather than a mere aspirational goal.
Tools for Change
A crucial segment of the meeting introduced the UN Global Compact’s Forward Faster – Living Wage Initiative [iii], to the participants which provides companies with a comprehensive framework to achieve living wages by 2030. This includes key definitions, recommended actions, and Key Performance Indicators (KPIs) to track progress. The initiative offers practical tools, such as wage calculation methods and case studies, guiding businesses to develop tailored strategies for implementing living wages. By setting clear goals and fostering accountability, the initiative empowers companies to lead the way in ensuring fair compensation that supports a dignified standard of living for all workers.
A Collective Commitment
This expert meeting was more than just a gathering of minds—it was a call to action. The commitment to ensure that every worker is compensated fairly is not just a goal for the future, but a necessity for the present.
The journey towards living wages is a long one, but with collaborative efforts between businesses, policymakers, and workers, it is achievable. The discussions in Pune mark the beginning of this journey, one that promises to reshape the wage landscape in India and create a more just and equitable society for all.
Looking Ahead
As I reflect on this experience, I am reminded of the importance of collective effort in creating lasting change. The path to living wages may be challenging, but it is one we must walk together. This expert meeting was just the first step. The road ahead is filled with possibilities, and I am excited to see the impact that these conversations and commitments will have on businesses, workers, and communities across India. The movement towards living wages is gaining momentum, and with continued dedication, it is possible to make fair wages a reality for all.
[I]https://economictimes.indiatimes.com/news/how-to/india-plans-to-replace-minimum-wage-by-living-wages-by-2025-heres-what-it-could-it-mean/articleshow/108795967.cms?from=mdr