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)

Effective date:1st Oct, 2020
Andaman and Nicobar Islands
Effective date:1st Jul, 2020
Andhra Pradesh
Effective date:1st Oct, 2020
Arunachal Pradesh
Effective date:1st Apr, 2016
Effective date:1st Dec, 2019
Effective date:1st Oct, 2020
Effective date:1st Oct, 2019
Effective date:1st Oct, 2020
Dadra and Nagar Haveli
Effective date:1st Apr, 2020
Daman and Diu
Effective date:1st Apr, 2020
Effective date:1st Apr, 2019
Effective date:1st Apr, 2020
Effective date:1st Oct, 2020
Effective date:1st Jan, 2020
Himachal Pradesh
Effective date:1st Apr, 2020
Jammu and Kashmir
Effective date:1st Nov, 2017
Effective date:1st Apr, 2020
Effective date:1st Apr, 2020
Effective date:1st Aug, 2020
Madhya Pradesh
Effective date:1st Oct, 2020
Effective date:1st Jul, 2020
Effective date:27th Dec, 2016
Effective date:1st Apr, 2020
Effective date:1st Apr, 2016
Effective date:14th Jun, 2019
Effective date:1st Oct, 2020
Effective date:1st Jan, 2020
Effective date:1st Sep, 2019
Effective date:1st May, 2019
Effective date:1st Jul, 2017
Tamil Nadu
Effective date:1st Apr, 2020
Effective date:1st Oct, 2020
Effective date:1st Apr, 2020
Uttar Pradesh
Effective date:1st Oct, 2020
Effective date:1st Oct, 2020
West Bengal
Effective date:1st Jul, 2020

Fixation and Revision of Minimum Wages

Under the Minimum Wages Act, 1948, both Central and State government have dominion over fixing the wages. The State governments fix their own 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 the employers did not exploit employees with insufficient wages. The Act is applicable on all establishments, factories, place 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 is deemed as an offence under the Central Act. The penalty may range from upto 5 years imprisonment and a fine of Rs. 10000/- (under Section 22 of the Act).

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