Kerala continues to stand out for offering the highest daily wages for workers in the unorganised sector, according to the Reserve Bank of India’s Handbook of Statistics on States.
Male agricultural workers in rural Kerala reportedly earn an average daily wage of Rs 807, while those engaged in the construction sector earn Rs 893. These wages are significantly higher than what workers earn in most other states.
Jammu and Kashmir and Tamil Nadu follow Kerala in terms of wage levels. Male agricultural workers in Jammu and Kashmir earn an average daily wage of Rs 566, whereas their counterparts in Tamil Nadu earn Rs 540. In the construction sector, workers in Jammu and Kashmir and Tamil Nadu earn Rs 552 and Rs 539, respectively.
In stark contrast, states like Madhya Pradesh, Gujarat, Uttar Pradesh, and Tripura report some of the lowest daily wages. Agricultural workers in Madhya Pradesh earn just Rs 242 a day on average, while the figures stand at Rs 256 in Gujarat, Rs 334 in Uttar Pradesh, and Rs 337 in Tripura. The situation is similar in the construction sector, where wages are Rs 292 in Madhya Pradesh, Rs 322 in Tripura, and Rs 344 in Gujarat.
This wage disparity is believed to be a major factor behind the large-scale migration of workers from other states to Kerala. The state is estimated to host around 40 lakh migrant workers, with many coming from northeastern states like Assam and Bengal, as well as northern states such as Uttar Pradesh and Bihar. The prospect of significantly higher wages in Kerala compared to their home states appears to be a key attraction.
While Kerala’s relatively high wages provide a livelihood boost for migrant workers, questions linger about how this inflow may evolve. Will the state continue to be able to sustain its appeal in the face of economic changes or shifts in labour demand? Some observers speculate that Kerala’s wage rates could influence neighbouring states, gradually narrowing the wage gap. However, others argue that systemic factors, such as better living standards and worker protections in Kerala, might keep the flow steady for years to come.
The report’s findings also highlight broader regional inequalities in wages, particularly in states like Madhya Pradesh and Gujarat. Could these disparities prompt other states to reassess their labour policies and improve wage conditions for unorganised workers? The answer might depend on political priorities, economic constraints, and how states choose to balance industrial competitiveness with worker welfare.
