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Why are the wages for farm labourers in Palampur less than minimum wages?

NCERT Class 9th Economics Social Studies Ch 1 The Story of Village Palampur


Farm workers at Palampur village get lower wages than the minimum wages fixed by the
government. The minimum wages for a farm labourer is fixed at Rs 115 per day. But farm
labourers get only Rs 70 - 80. This happens because of heavy competition for work among the
farm labourers at Palampur village.
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