Minimum Wages in India — State-wise Rates and Compliance Requirements

Minimum wages in India are set separately by the central government and each state government. The central government sets minimum wages for scheduled industries under its jurisdiction. State governments set minimum wages for other establishments within their states. Minimum wages are revised periodically and vary by skill category, industry, and zone within each state.

The Code on Wages 2019 introduces a national floor wage which serves as the minimum below which no state can set its minimum wage. The national floor wage is reviewed periodically. States must ensure their minimum wages are at or above this floor level for all categories of workers.

Paying below minimum wage is a criminal offence under the Minimum Wages Act and the new Code on Wages. Penalties include fines up to Rs 50,000 for first offences and up to Rs 1,00,000 for repeat offences, plus imprisonment of up to five years in serious cases. Employers are also liable to pay the difference between actual wages paid and minimum wages.

Yes. Minimum wage laws apply to IT companies in India. Many states have specific minimum wage notifications for software professionals and IT sector employees. Compliance with minimum wages is verified during labour inspections and is increasingly scrutinised as part of vendor audits by global clients.

Minimum wages are typically revised every six months or annually depending on the state. Revisions are based on the Consumer Price Index for the relevant category. Employers must track minimum wage notifications for each state they operate in and update payroll systems accordingly to maintain compliance.