68 Problems of Labour in India: Low Wages and Poverty, Job Insecurity, Informality, Child and Bonded Labour, Gender and Caste Discrimination, Migrant Labour Vulnerability, Skill Gap, Health and Safety, Social Security Gap, Trade Union Weakness, Unemployment, Future-of-Work Risks and Policy Responses
68.1 A Catalogue of Persisting Problems
For all the progress of recent decades, the Indian labour story is one of persistent problems — low wages and persisting poverty among workers, widespread informality and absence of social protection, child and bonded labour despite legal bans, deep-rooted gender and caste discrimination, vulnerability of internal migrants exposed by the 2020 pandemic, educated youth unemployment, workplace accidents and occupational diseases, skill gap, weak unions and future-of-work threats from AI and automation. This concluding chapter consolidates the problems and the policy responses.
68.2 1 · Twelve Major Problems
TipTwelve Major Problems of Labour in India
| # | Problem | Substance |
|---|---|---|
| 1 | Low wages and working poverty | ~ 80 % earn below Rs 25,000/month |
| 2 | Informality | > 80 % no contract / SS |
| 3 | Job insecurity | Contract / casual / gig |
| 4 | Child labour | ~ 1 crore (2011 Census); declining but persistent |
| 5 | Bonded labour | Banned 1976 but persistent — estimated 8-18 million |
| 6 | Gender discrimination | Low female LFPR; wage gap ~ 30-40 % |
| 7 | Caste discrimination | Manual scavenging, leather, hereditary occupations |
| 8 | Migrant vulnerability | 100+ million; no portability of welfare |
| 9 | Skill gap and educated unemployment | < 5 % formally trained; graduate UR ~ 13 % |
| 10 | Workplace safety / health | High accident and disease rates |
| 11 | Social security gap | < 10 % organised sector with full coverage |
| 12 | Trade union weakness | Density falling; fragmentation |
| 13 | Unemployment | UR 3.2 % usual; youth ~ 10 %; underemployment endemic |
| 14 | Future-of-Work risks | AI / automation displacement |
68.3 2 · Low Wages and Working Poverty
TipIndian Wage Levels
| Indicator | Value |
|---|---|
| Median wage (PLFS 2022-23) | ~ Rs 12,000/month |
| Casual worker wage | ~ Rs 8,000/month |
| Self-employed earnings | ~ Rs 14,000/month |
| Regular salaried | ~ Rs 22,000/month |
| Floor wage proposed under Code on Wages 2019 | Rs 178 (later Rs 178-202)/day |
| ILO minimum wage benchmark | $1.90/day (extreme poverty) |
The floor wage is meant to be the national lower bound below which no state can set its minimum.
68.4 3 · Child Labour
TipChild Labour Framework
| Statute | Substance |
|---|---|
| Child Labour (P&R) Act 1986 | Renamed Child and Adolescent Labour Act by 2016 amendment |
| 2016 amendment | Total ban < 14 years; restricted ban for adolescents 14-18 in hazardous; allows family-based work in non-hazardous |
| Article 24 | Prohibits employment of children below 14 in factories / mines / hazardous |
| RTE Act 2009 | Free and compulsory education 6-14 years |
| PENCIL portal | Platform for effective enforcement of no child labour |
| M.C. Mehta v. State of TN 1996 | Supreme Court guidelines on rehabilitation and fund |
Census 2011 reported ~ 1.01 crore working children (5-14 years); subsequent estimates suggest significant decline.
68.5 4 · Bonded Labour
- Bonded Labour System (Abolition) Act 1976 — abolished bonded labour; rescue and rehabilitation framework.
- Article 23 — prohibits forced labour and trafficking.
- Central Sector Scheme for Rehabilitation of Bonded Labour 2016 — financial assistance up to Rs 3 lakh.
- Persistent in brick kilns, agriculture, domestic work, stone quarries.
- ILO Global Estimates of Modern Slavery 2022 — estimated 11 million in India (forced labour + forced marriage).
68.6 5 · Gender Discrimination
TipGender Issues
| Issue | Substance |
|---|---|
| Female LFPR | 37 % vs 78 % male |
| Wage gap | Women earn ~ 60-70 % of male wages |
| Occupational segregation | Pink-collar concentration |
| Workplace sexual harassment | Vishakha 1997; PoSH Act 2013 |
| Maternity | 26 weeks (2017 amendment) — high for organised; rare for informal |
| Glass ceiling | Few women in senior management |
68.7 6 · Caste Discrimination
- Manual scavenging — Prohibition Act 1993, replaced 2013 Act.
- SC/ST Atrocities Act 1989 — protection from caste-based violence including in workplace.
- Reservation in public employment under Articles 16(4), 16(4-A) and 16(4-B).
- Hereditary occupation persistence — leather, sanitation, manual scavenging.
68.8 7 · Internal Migrants
TipMigrant Worker Issues
| Issue | Substance |
|---|---|
| No PDS portability | “One Nation One Ration Card” launched 2019-20 |
| No vote portability | Cannot vote in destination state |
| No skill certification portability | RPL helps |
| Lack of legal protection | Inter-State Migrant Workmen Act 1979 weakly enforced |
| Pandemic exposure | March-May 2020 — millions stranded; reverse migration ~ 30-40 million |
| e-Shram | Database of unorganised workers including migrants |
68.9 8 · Skill Gap and Educated Unemployment
- NSDC 2008; NSDM 2015; PMKVY, NATS, Sankalp.
- National Education Policy 2020 — vocational education in school curriculum from class 6.
- Skill India Mission — target 40+ crore skilled workers.
- Graduate UR ~ 13 % — high educated unemployment.
68.10 9 · Workplace Safety and Health
- ~ 8,000-10,000 fatal industrial accidents annually (ILO estimate; official is lower).
- Silicosis in Rajasthan stone mines — pension and compensation policy 2019.
- DGFASLI, NIOH, DGMS — regulators.
- OSH&WC Code 2020 — consolidation.
- ISO 45001 — voluntary global standard.
68.12 11 · Trade Union Weakness
- Union density falling — < 10 % overall; 25-30 % in organised sector.
- Fragmentation — multiple unions, political affiliations.
- Code on Industrial Relations 2020 — sole negotiating union concept.
- 2020-21 farmers’ protests — re-emergence of mass mobilisation.
68.13 12 · Future of Work — AI and Automation
- IT services — software code generation by AI threatens entry-level jobs.
- Manufacturing — robotics displaces routine jobs.
- Transport — driverless threat (long-term).
- Customer service — voice AI displaces call centre.
- BPO — process automation.
- NITI Aayog #AIforAll (2018) strategy.
68.14 13 · Policy Responses
TipKey Policy Responses
| Response | Substance |
|---|---|
| Four Labour Codes | Consolidate 29 laws — Wages, IR, SS, OSH&WC |
| MGNREGA | Right to 100 days of rural employment |
| PM-KISAN | Income support |
| e-Shram | Unorganised workers database |
| PMKVY / Skill India | Skill development |
| PLI | Manufacturing-led job creation |
| PMSYM / APY | Pension for unorganised |
| PM-JAY | Health cover up to Rs 5 lakh |
| ABRY | EPF subsidy for new hires |
| One Nation One Ration Card | PDS portability |
| Manual Scavengers Act 2013 | Caste-based occupation ban |
| PoSH Act 2013 | Workplace sexual harassment |
| CLR Amendment 2016 | Total child labour ban < 14 |
68.15 14 · The Way Forward
- Quality of jobs as headline indicator alongside quantity.
- Female participation through childcare, safe transport, flexible work.
- Universal social security as the welfare-state direction.
- Continuous reskilling for AI era.
- Migrant protection through portable rights.
- Active labour-market policy — placement, training, mobility support.
68.16 Practice Questions
Q 01InformalEasy
The biggest single problem of Indian labour is:
View solution
Correct Option: B
> 80 % informal.
Q 02Bonded ActMedium
The Bonded Labour System (Abolition) Act was passed in:
View solution
Correct Option: B
1976.
Q 03PoSHMedium
The Prevention of Sexual Harassment (PoSH) Act came in:
View solution
Correct Option: C
PoSH Act 2013 (Vishakha guidelines 1997).
Q 042016 childMedium
The Child Labour (Prohibition & Regulation) Act was renamed in 2016 as:
View solution
Correct Option: A
2016 amendment renamed.
Q 05MC MehtaHard
M.C. Mehta v. State of TN (1996) related to:
View solution
Correct Option: A
Sivakasi child labour case.
Q 06Bonded estimateHard
ILO Global Estimates of Modern Slavery (2022) estimates the forced-labour population in India at approximately:
View solution
Correct Option: B
~ 11 million.
Q 07PENCILHard
PENCIL portal is for:
View solution
Correct Option: A
Platform for Effective Enforcement for No Child Labour.
Q 08ONORCMedium
One Nation One Ration Card (ONORC) addresses:
View solution
Correct Option: A
Food grain portability.
Q 09MatchHard
Match problem with framework:
| (i) | Child labour | (a) | PoSH Act 2013 |
| (ii) | Bonded labour | (b) | CLPRA 1986 (amended 2016) |
| (iii) | Sexual harassment | (c) | BLSA Act 1976 |
| (iv) | Manual scavenging | (d) | PEMSR Act 2013 |
View solution
Correct Option: A
Standard pairings.
Q 10Floor wageHard
The "floor wage" under the Code on Wages 2019 was proposed at:
View solution
Correct Option: B
Anoop Satpathy Committee recommendation.
Q 11RTEMedium
RTE Act provides free and compulsory education for:
View solution
Correct Option: B
6-14 years; Article 21A.
Q 12VishakhaMedium
Vishakha guidelines were laid down by the Supreme Court in:
View solution
Correct Option: B
Vishakha v. State of Rajasthan 1997.
Q 13NEPMedium
The National Education Policy was announced in:
View solution
Correct Option: C
NEP 2020.
Q 14SC STHard
SC/ST Prevention of Atrocities Act was enacted in:
View solution
Correct Option: B
1989.
Q 15PEMSRMedium
PEMSR Act 2013 deals with:
View solution
Correct Option: A
Manual Scavengers Act 2013.
Q 16ABRYHard
Aatmanirbhar Bharat Rozgar Yojana provides:
View solution
Correct Option: A
EPF subsidy 2020-22.
Q 17Compulsory edMedium
Article 21A inserted by 86th Amendment relates to:
View solution
Correct Option: A
86th Amendment 2002.
Q 18Sole unionHard
IR Code 2020 introduces concept of:
View solution
Correct Option: A
Sole negotiating union with 51 % membership.
Q 19CensusMedium
Census 2011 reported working children (5-14) at approximately:
View solution
Correct Option: B
~ 1.01 crore.
Q 20FutureMedium
The biggest "future of work" risk for India is:
View solution
Correct Option: A
AI / automation displacement.
68.17 Quick Recall
ImportantQuick recall
- Twelve problems: low wages, informality, insecurity, child labour, bonded labour, gender / caste discrimination, migrant vulnerability, skill gap, safety, social security gap, weak unions, future-of-work risks.
- Child labour: CLPRA 1986 (renamed Child and Adolescent 2016); RTE Act 2009; Article 24; PENCIL portal; M.C. Mehta v. TN 1996.
- Bonded labour: BLSA 1976; Article 23; Central Sector Scheme 2016; ILO Global Slavery Estimate ~11 million Indians (2022).
- Gender: Female LFPR 37 % (rising); wage gap 30-40 %; Vishakha 1997 → PoSH Act 2013; Maternity Benefit Amendment 2017 (26 weeks).
- Caste: PEMSR Act 2013; SC/ST Atrocities Act 1989.
- Migrants: ISMW Act 1979; ONORC 2019-20; pandemic reverse migration ~30-40 mn; e-Shram 2021.
- Skill: NSDC 2008, NSDM 2015, PMKVY 2015, NEP 2020.
- Floor wage (Anoop Satpathy 2019) — Rs 178-202/day proposal.
- Safety: DGFASLI, NIOH, DGMS, OSH&WC Code 2020.
- Social security: PMSYM, APY, PM-JAY, ABRY (EPF subsidy 2020-22).
- Future-of-Work: AI / automation displacement; NITI #AIforAll 2018.
- Four labour codes 2019-20 consolidate response; Code on Social Security 2020 includes gig/platform workers.
68.11 10 · Social Security Gap