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India to announce min. wage for GCC workers
DUBAI — The Indian government is likely to soon announce a minimum wage limit for unskilled workers for all Gulf Cooperation Council (GCC) states, on the lines of the BD100 (Dh976) minimum wage limit which has been fixed for Bahrain and comes into effect on March 1.
The Minister for Overseas Indian Affairs Vayalar Ravi told Khaleej Times yesterday over the telephone from Chennai that Indian diplomatic missions in the other GCC states (UAE, Oman, Kuwait, Qatar, Saudi Arabia) have all been asked to forward their recommendations and proposals in this connection.
Speaking to Khaleej Times Indian Ambassador to the UAE Talmiz Ahmed confirmed that the minimum wage issue for unskilled workers is currently under study and a policy announcement is expected shortly.
He added: “All details in this connection will be made public later.”
Elaborating on the his ministryís policy to protect the rights of overseas Indian workers, especially unskilled labourers in the construction sector, Ravi said that the minimum wage limit is likely to vary from one GCC state to another- on the basis of cost of living and other economic factors.
He pointed out that in Bahrain top Indian embassy officials had already discussed the minimum wage limit issue with the local government authorities and industry leaders before making their recommendations. “A similar exercise is now be undertaken by Indian diplomatic missions in other GCC states,” Ravi said.
“The implementation of the minimum wage policy will be carried out in a phased manner. We do not want any friction with any foreign government and as such our minimum wage policy announcement will be made only after prior consultation with local government authorities,” Ravi stressed.
“With the plummeting value of the Dollars and the rapidly escalating cost of living throughout the Gulf, the average salaries of unskilled workers are not sufficient. This serious situation prompted my ministry to come up with this protective policy,” Ravi disclosed.
Indian Ambassador in Bahrain, Balakrishna Shetty, was quoted as saying three days ago starting March India will stop workers from leaving for Bahrain unless they have their contracts attested by the Indian embassy.
Shetty also said the new wage limit will also apply to contracts that come up for renewal.
An estimated 2 million unskilled Indian labourers are working in the six GCC states.
Meanwhile, local construction company managers said the minimum wage decision will have a major impact in the real estate market.
Abdul Majeed, Manager of Power Construct, a Contracting Company in Ras Al Khaimah said, “A minimum wages system will have a major effect in the cost factor in construction industry. This will increase the cost of building and thus affect the real estate market throughout the Gulf.”
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