New Delhi, June 9 (KNN) With a classic socialistic fiat, the Delhi Government hiked the minimum wage in Delhi to Rs.13,350/-in March, 2017. Besides considering applicability and affordability of the near 40% hike in the wages within a year, the Government, in a populist hurry also ignored all legal cannons.

Firstly it constituted a task force for studying and recommending the wage revision but did not nominate any real MSME representative that are the largest employers. Also the committee evolved its own formula and methodology for calculating the minimum wages as against the standard procedure of linking wages with Price index.

Therefore the Delhi Government proceeded with a new methodology in place of the duly established legal procedure, disregarding the rules and laws of the land.

While welfare of all section of the citizen is the first responsibility of any democratic Government, it should not ignore the economic constraints and limitations of the economy. Otherwise unviable welfare measures will remain unimplemented whatever coercion the Government may try.

In the present case the hike in minimum wage will start a spiral of increased costs and make the products noncompetitive. And all appeals and representations of the employer to go for a justifiable minimum wage level, were simply ignored by the popular Government. 

In implementing its agenda, the Government even did not care about the judicial mandates.

Even when the Hon’ble high court of Delhi has stayed the implementation of the new wages, the Delhi Govt. is interpreting the court’s order in its own.

On one hand while the Delhi Government is denying the stay order on the new wage structure, on the other hand it says in its notification that "no action can be taken against violators till the time the hearing of the case gets over".

Therefore a big question that emerges is if not the Delhi Government is playing to gallery what else is Government is doing? (KNN/DB)

Also read: As Delhi Govt tightens implementation of increased Minimum Wages, MSMEs feel burdened