Sign up to our newsletter to get the latest on living wage and income  
Need help?

India

World bank, 2021
Poverty headcount ratio at $3.65 a day (2017 PPP) (% of population)
44%
Population below international poverty line

Varies by region and type of employment.

variable
National minimum wage

Equivalent to 10,627 Indian rupees per worker per month (rural areas of Uttar Pradesh).
Global Living Wage Coalition, 2023

118
per month
Rural living wage

Equivalent to 15,570 Indian rupees per worker per month (Tiruppur City in urban Tamil Nadu).
Global Living Wage Coalition, 2023

173
per month
Urban living wage
World bank, 2022
Employment in agriculture (% of total employment) (modeled ILO estimate)
43%
Agricultural workforce
World bank, 2023
Agriculture, forestry, and fishing, value added (% of GDP)
16%
Agriculture share of GDP

ITUC Global Rights Index, 2023
No guarantee of rights

5
very high
Risk to workers' rights

Context

India has a population of 1.4 billion people,[1] with 64% of inhabitants living in rural areas.[2] The agricultural sector employs 43%[3] of India’s workforce and accounts for 16%[4] of the nation’s GDP.

Nearly 70% of India’s rural households depend on agriculture for their livelihoods and most farmers in India, 82%, are smallholders. In addition, the demographics of agriculture in India have been changing as rural to urban migration of men has increased the number of women in agriculture. For many women agricultural work is done in tandem with domestic duties, creating additional burdens.[5]

The top produced crops in India are sugar cane, rice, milled rice, raw milk, wheat, and fresh buffalo milk.[6] India’s top exported products in terms of quantity are rice, milled rice, wheat, refined sugar, soybeans cake and dry onions[7]

Footnotes
  1. ^ World Bank. (2023). https://data.worldbank.org/indicator/SP.POP.TOTL?locations=IN
  2. ^ World Bank. (2023). https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=IN
  3. ^ World Bank. (2022). https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=IN
  4. ^ World Bank. (2023). https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=IN
  5. ^ FAO. (2017). http://www.fao.org/india/fao-in-india/india-at-a-glance/en/
  6. ^ FAOSTAT (2022). http://www.fao.org/faostat/en/#rankings/commodities_by_country
  7. ^ FAOSTAT (2022). http://www.fao.org/faostat/en/#rankings/commodities_by_country_exports

Wages

Minimum wage

Minimum wage in India varies by region and employment type, with a separate minimum wage established for agricultural workers.[1] State mandated minimum wages do not apply to the informal sector where violations of wages are most common. Similarly, minimum wages are not effectively enforced in the agricultural sector. In addition, although compulsory overtime is not permitted by law, there is no limit to the number of hours a worker can work, resulting in excessive working hours.[2]

Living wage

The Global Living Wage Coalition has developed 6 regional living wage benchmarks for India, 5 of which are focussed in rural areas.

The living wage estimate for the rural Nilgiris District in Tamil Nadu State is 13,914 Indian rupees (151 EUR) per month based on a family of 4 with 1.73 full-time workers. In Nilgiris District tea production and large tea estates are very significant and so this living wage estimate is focussed on workers in the tea sector.[3] 

The living wage estimate for the rural areas of eastern Uttar Pradesh is 13,535 Indian rupees (146 EUR) per month and is based on a family of 5 with 1.55 full-time workers. In the rural areas of eastern Uttar Pradesh there is a concentration of carpet weavers and so the living wage estimate focusses on workers employed in the carpet weaving industry.[4]

Two living wage estimates were also done for rural areas of Madhya Pradesh. For the Ratlam District, the estimate living wage is 14,114 Indian rupees (153 EUR) per month and is based on a family of 4.5 with 1.67 full-time workers. 5 with 1.55 full-time workers.[5] In the Chhindwara District, the living wage estimate is 13,279 Indian rupeers (144 EUR) per month, also based on a family of 4.5 with 1.67 full-time workers. 5 with 1.55 full-time workers.[6] 

Living wage estimates were also done for rural Andhra Pradesh. For the Ratlam District, the estimate living wage is 16,999 Indian rupees (184 EUR) per month and is based on a family of 4.5 with 1.67 full-time workers.[7] The living wage estimate focused on workers employed in the tobacco sector, as India is the second largest grower country in the world after China, followed by Brazil and the United States of America.

Finally, an urban living wage estimate was done for Tiruppur City, in Tamil Nadu, India. The value is 18,482 Indian rupees (200 EUR) per month and is based on a family of 4 with 1.58 full-time workers. The living wage estimate focuses on workers employed in the garment and textile sector.[8]

 

Footnotes
  1. ^ Wage Indicator Foundation (2023). Minimum Wage-India. https://wageindicator.org/salary/minimum-wage/india
  2. ^ U.S. Department of State. (2019). https://www.state.gov/reports/2019-country-reports-on-human-rights-practices/india/
  3. ^ Global Living Wage Coalition (2023): Living Wage for Rural Nilgiris, Tamil Nadu, Indi. https://www.globallivingwage.org/living-wage-benchmarks/rural-nilgiris-tamil-nadu-india/
  4. ^ Global Living Wage Coalition (2023): Living Wage for Bhadohi, Uttar Pradesh, India. https://www.globallivingwage.org/living-wage-benchmarks/rural-india/
  5. ^ Global Living Wage Coalition (2023): Living Wage for Rural Madhya Pradesh, India. 
  6. ^ Global Living Wage Coalition (2023). Living Wage for Rural Madhya Pradesh, India. Chhindwara District. https://www.globallivingwage.org/living-wage-benchmarks/rural-madhya-pradesh-india-chhindwara-district/
  7. ^ Global Living Wage Coalition (2023). Living Wage for Rural Andhra Pradesh, India. https://www.globallivingwage.org/living-wage-benchmarks/living-wage-for-rural-andhra-pradesh-india/
  8. ^ Global Living Wage Coalition (2023): Urban Living Wage for Tiruppur, Tamil Nadu, India. https://www.globallivingwage.org/living-wage-benchmarks/urban-india/

Living income

All published Living Wage Benchmarks include a living income report, estimating the cost of basic but decent living for a family in specific regions and looking into specific contexts[1]

Footnotes
  1. ^ Global Living Wage Coalition: India. https://www.globallivingwage.org/countries/india/

What's happening

initiative

Assessing the need for living wage benchmark studies for the tea sector in Assam and West Bengal

Global Living Wage Coalition's report compiles findings and recommendations for the tea industry, trade unions and other partners interested in advancing the dialogue on worker wages in the region and tea sector

initiative

Assessing coffee farmer income

Assessment of coffee farmer household income to better understand strategy and policy and to inform Fair Trade minimum prices. Fairtrade International & True Price, 2017.

initiative

Wage Issues in the Tea Industry

Project aiming at increasing understanding of wages and living wage gaps in the tea sector, building partnerships and identifying obstacles to raising wages.

initiative

Small Tea Growers Sustainability Platform

Multi-stakeholder platform set up to improve livelihoods of tea smallholders in India. The Platform aims to close the living income gap by 20 percent.

resource

Living Wage Benchmark, Rural Andhra Pradesh

Living wage estimate for rural Andhra Pradesh, India. Global Living Wage Coalition, 2023

resource

Living Wage Benchmark, Rural Madhya Pradesh

Living wage estimate for rural Madhya Pradesh, in the Chhindwara District. Global Living Wage Coalition, 2023. 

resource

Living Wage Benchmark, Rural Madhya Pradesh

Living wage estimate for rural Madhya Pradesh, in the Ratlam District. Global Living Wage Coalition, 2023

resource

Living wage Benchmark, Rural Tamil Nadu

Living wage estimate for rural areas of Eastern Uttar Pradesh, in the Bhadohi district, with a focus on the carpet weaving industry. Global Living Wage Coalition, 2023

resource

Living Wage Benchmark, Rural Uttar Pradesh

Living wage estimate for rural areas of Eastern Uttar Pradesh, in the Bhadohi district, with a focus on the carpet weaving industry. Global Living Wage Coalition, 2023

resource

Living Wage Benchmark, Urban Tamil Nadu

Living wage estimate for Tiruppur city in the state of Tamil Nadu, India, with a focus on the garment and textile sectors. Global Living Wage Coalition, 2023.

Learned enough?