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.
The states which impose minimum wages in India are listed below: (Click on the state name for more details)
Andaman and Nicobar Islands
Andhra Pradesh
Bihar
Dadra and Nagar Haveli
Goa
Himachal Pradesh
Karnataka
Madhya Pradesh
Meghalaya
Odisha
Rajasthan
Telangana
Uttarakhand
Arunachal Pradesh
Chandigarh
Daman and Diu
Gujarat
Jammu and Kashmir
Kerala
Maharashtra
Mizoram
Puducherry
Sikkim
Tripura
West Bengal
Assam
Chhattisgarh
Delhi
Haryana
Jharkhand
Ladakh
Manipur
Nagaland
Punjab
Tamil Nadu
Uttar Pradesh
Under the Minimum Wages Act, of 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.
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.
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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