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

Bihar

Effective date:1st Oct, 2023

Dadra and Nagar Haveli

Effective date:1st Apr, 2023

Goa

Effective date:1st Oct, 2023

Himachal Pradesh

Effective date:1st Apr, 2023

Karnataka

Effective date:1st Apr, 2023

Madhya Pradesh

Effective date:1st Oct, 2023

Meghalaya

Effective date:1st Oct, 2022

Odisha

Effective date:1st Oct, 2023

Rajasthan

Effective date:1st Jul, 2021

Telangana

Effective date:1st Oct, 2023

Uttarakhand

Effective date:1st Oct, 2023

Arunachal Pradesh

Effective date:1st Apr, 2016

Chandigarh

Effective date:1st Oct, 2022

Daman and Diu

Effective date:1st Apr, 2023

Gujarat

Effective date:1st Oct, 2023

Jammu and Kashmir

Effective date:17th Oct, 2022

Kerala

Effective date:1st Nov, 2023

Maharashtra

Effective date:1st Jan, 2024

Mizoram

Effective date:1st Apr, 2023

Puducherry

Effective date:1st Jan, 2020

Sikkim

Effective date:11th Jul, 2022

Tripura

Effective date:1st Oct, 2023

West Bengal

Effective date:1st Jan, 2024

Assam

Effective date:1st Jun, 2023

Chhattisgarh

Effective date:1st Oct, 2023

Delhi

Effective date:1st Oct, 2023

Haryana

Effective date:1st Jul, 2023

Jharkhand

Effective date:1st Oct, 2023

Ladakh

Effective date:2nd Nov, 2022

Manipur

Effective date:27th Dec, 2016

Nagaland

Effective date:14th Jun, 2019

Punjab

Effective date:1st Sep, 2023

Tamil Nadu

Effective date:1st Apr, 2023

Uttar Pradesh

Effective date:1st Oct, 2023

Fixation and Revision of Minimum Wages

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.

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