Tamil Nadu and Kerala set daily wage benchmarks, pay Rs 112 more than national average

CHENNAI: Daily wage labourers in Tamil Nadu earn Rs 112 more than the national average of Rs 417. Ranking third in the country for wages in the unorganised sectors, the state is outpaced only by Kerala and Jammu-Kashmir.

The average daily wages for unorganised labourers in TN and its neighbouring Kerala highlight the stark disparity and demonstrate how labourers are underpaid in other parts of the country, particularly in the northern states.

This also explains why these southern states attract more migrant labourers from other states.

Kerala has set the benchmark for average daily wages for labourers in construction, agriculture, and non-agriculture sectors. Labourers in Kerala are earning Rs 893.6 per day, more than double the national average of Rs 417. In comparison, labourers in Jammu-Kashmir earn Rs 552 daily, while those in Tamil Nadu receive Rs 539.7, according to the RBI’s Handbook of Statistics on Indian States for 2023-2024. The yearly average wages have been calculated from monthly rates.

The report reveals that labourers in Madhya Pradesh — paid Rs 292.4 — are at the bottom of the wage list, followed by Tripura (Rs 322), Gujarat (Rs 344), and Manipur (Rs 350). The wages have increased in these states by around Rs 115 since 2014-15. However, the wage disparity remained unchanged.

The wages in these states do not even match the daily wages of labourers in the two southern states, which continue to pay the workforce more than the national average since 2011, according to the reports.

In fact, labourers in Kerala earned Rs 609.7 per day in 2014-2015, while those in Tamil Nadu received a daily wage of Rs 372.8 during the same period. Similarly, Jammu-Kashmir remained the second-highest paying state, with labourers earning Rs 382.1 per day in 2014-2015.

A similar trend is observed in the wage patterns for general agricultural labourers and those in non-agricultural sectors. The wages significantly increased for labourers in Andhra Pradesh, Karnataka, and Himachal Pradesh since 2011-2012 and are far better than in northern states.

Several states still fail to match Kerala’s average daily wage for labourers in 2014-2015. The report also highlights a significant wage disparity, as labourers in five states — Tripura, Manipur, MP, and Gujarat — are paid less than Rs 350 per day, which is Rs 67 below the national average.

The data again underscores why these two southern states remain the most sought-after destinations for migrant workers from northern and northeastern states. Aside from guaranteeing steady employment and providing a safe and secure environment, these states offer significantly higher wages.

According to the report, a construction worker in Bihar, Gujarat, and MP is paid Rs 200 to Rs 600 less than their counterparts in the two southern states.