Average Daily Earnings in Informal Non-Agricultural Sector Below Minimum Wage Benchmark: Report

New Delhi: In India’s unincorporated non-agricultural sector, average daily earnings are even below the minimum-wage benchmark for unskilled non-agricultural work in smaller towns and non-metro areas, reported Business Standard, upon analysing data from latest Annual Survey of Unincorporated Sector Enterprises (ASUSE).

This gap further widens when it is compared with wage categories for semi-skilled and skilled workers, with the data also revealing the continued dominance of own-account enterprises.

The Business Standard report added that average daily earning was Rs 391 in manufacturing, Rs 401 in trade and Rs 420 in other services, with all these figures being below the minimum-wage benchmark of Rs 477 per day for unskilled non-agricultural work. Semi-skilled and skilled minimum-wage categories were higher.

While the number of establishments increased from 59.7 million in 2022 to 79.2 million in 2025, the own-account enterprises, which are businesses run without regularly hired workers, accounted for 86% of all establishments, reported Business Standard.

These businesses are usually run by self-employed individuals or family members.

The Wire had previously reported, based on the findings of ASUSE for 2021-22 and 2022-23 that India’s 65 million informal or unincorporated sector enterprises employed 110 million workers in 2022-23.

These enterprises cumulatively created a gross value added (GVA) worth 15.4 lakh crore, with the GVA and employment share of the informal sector outside of agriculture, therefore, accounting for 6% and 19% respectively.

Considering 45% employment and 18% income share of agriculture in overall GVA, it becomes clear that two-thirds of workers account for just one-fourth of India’s GVA. These numbers indicate the deep-seated inequality in the Indian economy.

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