57% Employees Earn Less Than Rs 10,000/month; Average Monthly Income Is Rs 13,562!
Only 1.6% of Indians are earning more than Rs 50,000
At a time when networth of the ultra-rich are increasing at an unprecedented pace, there is this unexplainable gap in income for the poor, which is widening day by day.
As per a new report by Azim Premji University, called ‘State of Working India’, 57% of regular Indian employees are right now earning less than Rs 10,000 per month.
Is this a warning sign for India?
Income Disparity Increases: 57% Earn Less Than Rs 10,000
There are two types of employees in India right now: Regular and Casual.
If we talk about regular employees, who are working for 8-10 hours a day, then the average monthly income is way less than what Govt. has proposed.
As per the report, 57% of the regular employees are earning less than Rs 10,000 per month, and the average monthly income of this group is Rs 13,562 only.
The report said, “The key measure of the quality of jobs is, perhaps, how remunerative they are. Broadly speaking, wage levels have remained low and have grown slowly over the last three decades.”
As per the Seventh Central Pay Commission (CPC), the minimum monthly income of a regular employee has to be Rs 18,000.
Casual Employees Face Worst Situation
Meanwhile, casual employees, who are basically freelancers and non-regular employees fare even worst.
59% of all casual employees in India are earning less than Rs 5000 per month, while the average income of casual employees is Rs 5,853.
As per the report, this can be the reason why demand for Govt. jobs is at an all-time high, all over the nation.
Which Sectors Provide Maximum Growth?
The good news is that wages in both organized and non-organized sectors are increasing at a gradual pace.
Between 2000 and 2015, wages in agriculture and unorganized manufacturing increased by an average of 3% year on year.
Interestingly, wages in the unorganized sector is increasing at a faster pace, and the gap between these two sectors have reduced a lot in the last few years.
Among all the industries, services industries grew the fastest, and this sector provided more employment for all. On an average, unorganized service sector grew by 5% between 2000 and 2015.
But still, the wages in the sector is less than what central pay commission Group D salary is.
You can find the complete report right here.