Section 7. Worker Rights
e. Acceptable Conditions of Work
The parliament passed its first-ever national minimum wage law in 2015. The Department of Labor’s wage boards continued to set minimum wages and working conditions by sector and industry in consultation with unions and employers. Public-sector salary was 34,550 rupees ($186). The minimum private-sector and public-sector wages were above the government’s official poverty line.
The law prohibits most full-time workers from regularly working more than 45 hours per week (a five-and-one-half-day workweek). In addition, the law stipulates a rest period of one hour per day. Regulations limit the maximum overtime hours to 15 per week. Overtime pay is 1.5 times the basic wage and is paid for work beyond 45 hours per week and work on Sundays or holidays. The provision limiting basic work hours is not applicable to managers and executives in public institutions. The law provides for paid annual holidays.
Enforcement of minimum wage and overtime laws was insufficient. Under the Shop and Office Act, penalties for violating hours of work laws are a fine of 500 rupees ($2.89), six months’ imprisonment, or both. The law provides for a fine of 50 rupees ($0.29) per day if the offense continues after conviction. These penalties were commensurate with those for similar crimes, such as fraud. Labor inspectors did not monitor wages or working conditions or provide programs or social protections for informal-sector workers. In 2018 amendments to the factory’s ordinance and the wages board ordinance increased fines for nonpayment of salaries to workers under the purview of the wages board to between 5,000 rupees ($27) and 10,000 rupees ($55), along with imprisonment not exceeding one year.
The government sets occupational health and safety standards. Workers have the right to remove themselves from dangerous situations, but many workers had no knowledge of such rights or feared that they would lose their jobs if they did so.
Authorities did not effectively enforce occupational safety and health standards in all sectors. Penalties for violations of occupational safety and health laws were commensurate with those for crimes such as negligence. The Labor Ministry’s resources, inspections, and remediation efforts were insufficient. The number of labor inspectors was insufficient for the country’s workforce. Occupational health and safety standards in the rapidly growing construction sector, including infrastructure development projects, such as port, airport, and road construction, as well as high-rise buildings, were insufficient. Employers, particularly those in the construction industry, increasingly used contract employment for work of a regular nature, and contract workers had fewer safeguards. According to the 2019 Labor Survey, approximately 62 percent of the country’s workforce was employed informally, and legal entitlements enjoyed by formal-sector workers such as Employees Provident Fund, Employees Trust Fund, paid leave, gratuity payments, and security of employment, were not available to a large majority of the aggregate workforce in the country.
Labor Ministry inspectors verified whether employers fully paid employees and contributed to pension funds as required by law. Unions questioned, however, whether the ministry’s inspections were effective. The Labor Department used a computerized labor information system application designed to improve the efficiency and effectiveness of inspections, but officials and trade unions noted concerns that the system was not well maintained.
When the government imposed a countrywide lockdown on March 20 due to COVID-19, employers in FTZs forced workers to continue working until cases spread and workers protested. After one month, several large companies resumed work, putting workers in unsafe conditions amid rising COVID-19 infections. The workers did not received their wages for March and April when they returned. Factory workforces experienced serious job cuts.