"The category of ‘unskilled’ labour is a regulatory construct rather than an economic reality." Critically examine this in light of the Code on Wages, 2019.

The Code on Wages, 2019 lets governments fix minimum wages mainly by a worker's skill [1]. Its draft rules sort jobs into four grades: unskilled, semi-skilled, skilled and highly skilled [2]. 'Unskilled' is therefore a legal label that decides pay. Real skill differences exist, but the low pay attached to this grade is set by law far more than by the market.

Why ‘unskilled’ is a regulatory construct

• Created by the state: the grade exists because the law ranks skill. A committee chaired by the Chief Labour Commissioner reviews the categories [2], and workers have little say in it.
• Paper over practice: grading usually rewards certificates. A mason with years on site but no certificate can still be 'unskilled' on paper.
• Needs do not vary by grade: the Satpathy Committee (2019) set a need-based wage of ₹375/day "irrespective of sectors, skills, occupations" [4]. Food and rent cost the same for every worker.
• No real floor underneath: the draft rules give no method for fixing the floor wage and do not require it to be revised regularly [2][3]. In practice, the 'unskilled' rate becomes the floor.
• Risk follows the label: employers often use the grade to deny increments, safety training and protective equipment. A wage category becomes a hazard category.

Where the category reflects economic reality

• Real productivity gaps: a tool-room machinist and a first-day helper do different work. The Code also lets governments consider difficulty of work [1].
• Reason to train: paying more for skill gives workers a reason to upskill, which supports Skill India goals.
• Risk to jobs: one high wage for everyone could make entry-level hiring costlier and push more work into the informal sector.
• Some variation is fair: even the Satpathy Committee proposed different rates for different regions [4].

Overall, some pay difference for genuine expertise is justified. What the law creates is the low 'unskilled' base and the denial of benefits that comes with it. The four Codes have been in force since 21 November 2025 [5], so the rules now being drafted are the chance to fix this. The government should notify the floor wage using the Satpathy method, with CPI-linked revision every six months [4]. Grading should count experience, not just certificates. Safety measures should depend on the hazard of the job, not the worker's grade, under the OSH Code, 2020. These steps would bring wages closer to the living wage of Article 43 and SDG 8 (decent work).