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 does not just support the bare level of employment but also seeks viable continuous improvement. It aims at preventing the 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, 2023
Andhra Pradesh
Effective date:1st Apr, 2023
Arunachal Pradesh
Effective date:1st Apr, 2016
Effective date:1st Dec, 2021
Effective date:1st Apr, 2023
Effective date:1st Oct, 2022
Effective date:1st Apr, 2023
Dadra and Nagar Haveli
Effective date:1st Oct, 2022
Daman and Diu
Effective date:1st Oct, 2022
Effective date:1st Apr, 2023
Effective date:1st Apr, 2023
Effective date:1st Apr, 2023
Effective date:1st Jan, 2023
Himachal Pradesh
Effective date:1st Apr, 2022
Jammu and Kashmir
Effective date:17th Oct, 2022
Effective date:1st Apr, 2023
Effective date:1st Apr, 2023
Effective date:1st Mar, 2023
Effective date:2nd Nov, 2022
Madhya Pradesh
Effective date:1st Apr, 2023
Effective date:1st Jan, 2023
Effective date:27th Dec, 2016
Effective date:1st Oct, 2022
Effective date:1st Apr, 2016
Effective date:14th Jun, 2019
Effective date:1st Apr, 2023
Effective date:1st Jan, 2020
Effective date:1st Mar, 2023
Effective date:1st Jul, 2021
Effective date:11th Jul, 2022
Tamil Nadu
Effective date:7th Aug, 2023
Effective date:15th Sep, 2023
Effective date:1st Oct, 2022
Uttar Pradesh
Effective date:1st Apr, 2023
Effective date:1st Apr, 2023
West Bengal
Effective date:1st Jan, 2023

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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