Passing a law may make it worse.

One year back the Delhi government passed 'The Minimum Wages (Delhi) Amendment Act, 2017' which was signed into law by the President in May 2018. The Act prescribes minimum wages for unskilled, semi-skilled and skilled workers and "employers violating labour rules in the city will now face fine ranging from Rs 20,000-50,000 and jail term between one to three years". "The employer will upload the employee data on website or web portal in the manner as may be prescribed, the notification added." The High Court in Delhi quashed the Delhi government order a few days back after an appeal by traders. In response, "Delhi government will challenge the verdict through special leave petition in the Supreme Court," said Labour Minister Gopal Rai. Wasting taxpayer money and clogging Supreme Court schedule. "The textbook model is the idea that if labour is mandated to be more expensive, many employers will find ways to make do with fewer workers," wrote Prof N Adhia and A Puri. But sceptics say that giving higher wages will increase efficiency as happy workers become more productive and fewer will quit their jobs. But, a higher minimum wage for all will not result in greater satisfaction or make an employer more attractive. Higher wages for everyone will increase "aggregate demand" and boost the economy, but "India's aggregate demand usually runs ahead of the economy's supply capacity, which is why we have inflation." "Strangely, the sceptics hail the possibility that a higher minimum wage will result in increased incentive for firms to invest in technology," not realising that firms will invest labour-saving devices. "Minimum wages are one of the most contentious topics in economic policy," wrote N Smith for Bloomberg. "Many American states and cities are experimenting with big minimum wage increases, so that there is now a lot of variation across the country." Wages are so low in the restaurant industry in the US that it is compulsory for customers to tip waiters serving them. These employees depend on tips to pay for their cost of living. Increasing minimum wages of these employees would decrease poverty but employers tend to reduce the number of employees and some may ask people to serve themselves, found researchers. "Arms-length capitalism" is reducing wages for workers and increasing risks in the economy, wrote A Nageswaran. He recommends "arms-around capitalism" where greed is reduced and workers are taken care of. Even financiers have the same advice for CEOs. The world is changing rapidly as technology advances at a furious pace so we must prepare our workers, wrote A Kapoor. The law of supply and demand suggests that if the number of people is reduced their wages will go up automatically. No need to pass laws in India.