Bridging the divide

Rates of minimum wage are distinct in rural and urban areas. Rural workers are paid much less than their urban counterparts. There is regional disparity and significant differences in minimum wages.

The rural-urban divide, to a certain extent, has been curbed by many government policies, as well as by investing in the necessary infrastructure. Undoubtedly, there has been a rebalancing of economic betterment for local communities. Some more long-term solutions, as well as legislative amendments, are needed. For example, there is a further need to shift certain industrial and administrative offices to places where there are lower rates of employment. This will enable people to stay close to their families and work, rather than staying isolated in expensive cities, thus also reducing pollution and other shortages. Needless to say, this would ipso facto lead to the development of rural areas, inter alia enhancing education, skills, lifestyle, etc. It would also help control the attrition rate in urban areas, which is skyrocketing. The massive increase is largely due to higher demand in metropolitan areas. Contrarily, in rural areas, people are ready to work for lesser amounts.

Furthermore, section 3 of the Minimum Wages Act, 1948, empowers the appropriate government to fix the minimum rates of wages in scheduled employments as well as revise the minimum rates at appropriate intervals. The variation of minimum wages between the States is due to differences in socio-economic conditions, prices of commodities, paying capacity, productivity, and other local conditions influencing the wage rate. The vast disproportion also needs to be reduced to stop locals from rushing to cosmopolitan cities. Needless to mention, simply increasing wages would not be a solution, as that may lead to reduced employment. In fact, making wages too high in urban areas is not of much help as the cost of living is too expensive and hardly any savings remain. The solution lies more in the distribution of work and the workforce.

Exercising some provisions available in the law, there can be development of areas that need attention. An economy can be strengthened in many ways, the most efficient way being to provide incentives on taxes to industries and businesses. For example, a Special Economic Zone (SEZ) governed by the Special Economic Zone Act, 2005, is a specially dedicated zone built by a country for promoting businesses and economic growth. Companies set up in the SEZ get relaxation on taxes by the government, etc. Setting up of SEZs in remote areas could be an added benefit for industries, especially foreign investors, to consider investing more in rural areas.

Almost every country has a minimum wage. The details vary, such as some countries like France fixing a universal minimum across the economy, while others, such as India and New Zealand, differentiating between types of workers owing to regional differences in the cost of living, economic development, and labour market situation. There can be a focus on developing areas with the lowest minimum wages.

Article 19(1)(g) of the Constitution of India ensures that all citizens have the right to practice any profession or engage in any occupation, trade, or business, subject to certain reasonable restrictions. Enabling rural areas with better employment opportunities would fulfil the objective of this provision. The Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights, both of which have been acceded by India, in Article 23 and Article 6 respectively, recognise the right to work in an employment of one's choice.

In the last few years, the concept of working from home as well as outsourcing has bridged the gap to a good extent. Many companies have redefined their remote working policies, hiring people from distant and aloof places. This trend reverses excessive urbanisation, as well as catering skills to remote areas.

With the combined efforts of all, as already existing, there has been enhancement of education, public health and sanitation, women's empowerment, infrastructure development, facilities for extension and research, etc., in various parts of the country. With more balancing, legislative amendments, and use of current provisions, grassroots issues in the remotest parts as well as excessive congestion in urban areas can be resolved.

The writer is a practising Advocate in Supreme Court and High Court of Delhi. Views expressed are personal