A report titled *Minimum Wages Hurt the Most Vulnerable Workers* by the Foundation for Economic Development highlights the challenges posed by India's high minimum wage structure. It reveals that 64% of workers earn below the legal wage floor, contributing to a staggering 88% informal workforce, which is higher than in Vietnam, Thailand, Bangladesh, or Mexico. The report notes that India's minimum wage is set at 169% of the median earnings of casual workers, significantly above the 50% benchmark seen in major competitor economies. This disparity is linked to lower formal employment rates, particularly in labor-intensive sectors like apparel and footwear, which have seen growth rates of 7-9% compared to 13-14% in capital-intensive sectors. The report also mentions that recent wage increases in Uttar Pradesh and Haryana have highlighted the regional disparities in wage structures, with Uttar Pradesh increasing unskilled wages to approximately ₹12,356-13,690 per month and Haryana to ₹15,220. As the government considers a national floor wage under the Code on Wages, 2019, the report suggests allowing for wage negotiations within a formal framework while proposing government-funded wage subsidies to support worker incomes without reducing labor demand.