Report: 87% Of Construction Workers In Megacities Are Not Paid
The Minimum Wage
According to the survey, Hyderabad had the highest average daily salary at Rs 584 while Delhi had the lowest average daily wage at Rs 515. Construction workers in India's megacities are not compensated with the daily minimum wage as required by law. According to a survey from construction technology firm projecthero, this trend is more pronounced in the case of unskilled labourers. Hyderabad performs somewhat better while Delhi has the worst performance, the survey claims.
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While the minimum wage (RS 711) is paid for 90.9% of assistance employment in Delhi, the percentages are 90.4% in Bengaluru, 88% in Pune, and 87.3% in Mumbai. The top city is Hyderabad, with 78.5%, according to the survey. It continues that, on average, 87% of construction assistants do not receive minimum pay. Delhi is the worst city for technician positions, with 66.5% of occupations paying less than the minimum wage (Rs 788). Bengaluru performs somewhat better, scoring 65.8%. 44% of occupations in Chennai pay less than the minimum wage.
Less than 10% of jobs pay into the Employee's Provident Fund and offer these workers coverage for Employee State Insurance, according to the report. Projecthero has compiled data from application trends and jobs placed on its app. The cities Mumbai, Bengaluru, Hyderabad, Chennai, and Pune, as well as DelhiNCR, are all included of the investigation.
"The construction market has been operating in a murky manner as a result of weak technological penetration. People have been able to get away with paying low salaries, breaking the law, and acting badly thanks to this opacity. Additionally, more than 50 million workers still need to use informal channels to acquire employment, and more than 1 million contractors still rely on referrals to secure work, according to Satya Vyas, founder and CEO of projecthero.
highest in Hyderabad and lowest in Delhi
Hyderabad had the highest average daily wage at Rs 584 while Delhi had the lowest at Rs 515. The highest average salary for technician positions is Rs. 862 in Hyderabad and Rs. 718 in Delhi. Hyderabad pays the highest salary for supervisor positions, at Rs. 1,035, while Pune pays the least, at Rs. 885. Delhi is in worst place, paying an average of Rs 925 per hour.
Less than 10% of employment offer insurance and PF.
Less than 10% of the 4,500 current positions on the platform offer employee state insurance and provident fund deposits to their staff. Only 8.6% of jobs have made preparations for Employee State Insurance coverage, and only 7.1% of jobs have made provisions for Employee Provident Fund contributions.
Maharashtra is the preferred location for migrant workers
Maharashtra, followed by Uttar Pradesh & Haryana, was the favourite area for migrant workers to find employment. Additionally, Maharashtra and Uttar Pradesh are the two states with the most active jobs. Gujarat is in third place.
There is a rise in digital literacy.
The building sector is gradually formalizing, according to data available through projecthero. "More contractors are digitizing their workflows and payment methods, which could eventually cause the cash economy, which is now dominating, to shrink. This appears to be consistent with the advancements made by the government's Digital India initiative, according to the study, which also notes that over 1.22 lakh employees have verified their bank account information on the program's app.
We believe that the industry is headed in the correct direction because of the widespread use of smartphones, the availability of inexpensive data, and the government's push for sector formalization
Construction employees can join ProjectHero to gain direct access to jobs, training, and other financial goods, and the platform assists contractors in hiring and managing construction workers. Projecthero has hired more than 3,000 workers for projects and currently has more than 4 lakh construction workers on their platform.
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