Minimum Wage

As per the Indian Constitution, 'Minimum Wage' has been defined as the level of income for skilled and unskilled workers which ensures a sustaining standard of living while also providing for some measure of comfort. A minimum wage not just supports the bare level of employment, but also seeks for viable continuous improvement. It aims at preventing exploitation of labour.


Minimum Wages For States Across India

The states which impose minimum wages in India are listed below: (Click on the state name for more details)

Andaman and Nicobar Islands
Effective date:1st Jan, 2024
Andhra Pradesh
Effective date:1st Oct, 2023
Arunachal Pradesh
Effective date:1st Apr, 2016
Assam
Effective date:1st Jun, 2023
Bihar
Effective date:1st Oct, 2023
Chandigarh
Effective date:1st Oct, 2023
Chhattisgarh
Effective date:1st Oct, 2023
Dadra and Nagar Haveli
Effective date:1st Apr, 2023
Daman and Diu
Effective date:1st Apr, 2023
Delhi
Effective date:1st Oct, 2023
Goa
Effective date:1st Oct, 2023
Gujarat
Effective date:1st Oct, 2023
Haryana
Effective date:1st Jan, 2024
Himachal Pradesh
Effective date:1st Apr, 2023
Jammu and Kashmir
Effective date:17th Oct, 2022
Jharkhand
Effective date:1st Oct, 2023
Karnataka
Effective date:1st Apr, 2024
Kerala
Effective date:1st Jan, 2024
Ladakh
Effective date:2nd Nov, 2022
Madhya Pradesh
Effective date:1st Apr, 2024
Maharashtra
Effective date:1st Jan, 2024
Manipur
Effective date:27th Dec, 2016
Meghalaya
Effective date:1st Oct, 2022
Mizoram
Effective date:1st Apr, 2023
Nagaland
Effective date:14th Jun, 2019
Odisha
Effective date:1st Oct, 2023
Puducherry
Effective date:1st Jan, 2020
Punjab
Effective date:1st Sep, 2023
Rajasthan
Effective date:1st Jul, 2021
Sikkim
Effective date:11th Jul, 2022
Tamil Nadu
Effective date:1st Apr, 2024
Telangana
Effective date:1st Oct, 2023
Tripura
Effective date:1st Oct, 2023
Uttar Pradesh
Effective date:1st Oct, 2023
Uttarakhand
Effective date:1st Oct, 2023
West Bengal
Effective date:1st Jan, 2024

Fixation and Revision of Minimum Wages

Under the Minimum Wages Act, 1948, both Central and State governments have dominion over fixing the wages. The State governments fix their scheduled employments and further release the rates of Minimum Wage along with the VDA (Variable Dearness Allowance). Wage boards are set up to review and fix minimum wages at specified intervals. The wage rates in scheduled employments differ across states, sectors, skills, regions, and occupations owing to a lot of differentiating factors. Hence, there is no single uniform minimum wage rate across the country and the revision cycle differs for each state.

Scope and Applicability

Minimum Wages Act was enforced to ensure that employers did not exploit employees with insufficient wages. The Act applies to all establishments, factories, places of business and industry types. Unscheduled industries are generally excluded, though a state can add a minimum wage for an occupation or specify it for a sector during a revision cycle.

Consequences of Non-Compliance

Under-payment and non-payment of Minimum Wage are deemed an offence under the Central Act. The penalty may range from up to 5 years imprisonment and a fine of Rs. 10,000 (under Section 22 of the Act).P

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