Minimum Wages in India
Minimum Wages in India: State-Wise Rates Directory
Complete state-wise minimum wage reference for Indian employers. 28 states, 8 union territories, 4 skill levels, economic zones, National Floor Wage, and VDA explained. Backed by factoHR.
28
States
Notify own rates
8
Union Territories
Separate notifications
Rs 178
National Floor Wage
Per day baseline
4
Skill Levels
Unskilled to Highly Skilled
Fast Facts
India has no single national minimum wage. A central National Floor Wage sets a baseline, but every state notifies its own rates by skill level and zone under the Minimum Wages Act, 1948, revised twice a year via VDA. All 36 states and UTs issue their own notifications.
Minimum wages in India at a glance
Six facts every Indian HR and payroll team should know before running payroll.
State-Notified Rates
Every state and UT notifies its own minimum wages for scheduled employments. No single national rate.
National Floor Wage
Rs 178 per day baseline set centrally. No state can notify rates below this floor under the 1948 Act.
VDA Twice a Year
Variable Dearness Allowance adjusted every April and October based on Consumer Price Index for Industrial Workers.
4 Skill Levels
Unskilled, Semi-Skilled, Skilled, Highly Skilled. Rates rise by skill band per state notification.
Zone A, B, C, D
States with cost-of-living differences split into zones. Zone A metros have highest rates, Zone D rural lowest.
Code on Wages 2019
Consolidates the 1948 Minimum Wages Act with 3 other acts. Introduces statutory floor wage and 5-year revision cycle.
Minimum Wages by State and Union Territory
Pick any state or UT to open its zone-wise, skill-wise wage breakdown with source links and effective dates.
States (28)
Each state notifies its own minimum wage rates by skill and zone.
Union Territories (8)
UTs notify their own minimum wages, often higher than neighbouring state rates.
All 36 entities covered. Zone-wise, skill-wise rates, effective dates, and notification sources open on each state page. Rates indicative, verify with state Labour Department before payroll.
4 skill levels in Indian minimum wages
Every state notifies separate minimum wage rates for each skill band.
Unskilled
Work requiring simple duties and no special training or trade skills.
Examples
Loader, Cleaner, Helper, Packer Assistant
Semi-Skilled
Work requiring some experience or basic training but no formal trade certification.
Examples
Operator Assistant, Packer, Store Keeper
Skilled
Work requiring trade-level skill, training, or an ITI / certificate.
Examples
Machine Operator, Electrician, Welder, Carpenter
Highly Skilled
Work requiring advanced training, supervisory duties, or specialised knowledge.
Examples
Senior Technician, Supervisor, Diploma Engineer
Economic zones explained (A, B, C, D)
States with cost-of-living differences split into zones. Not every state uses zones.
Zone A
Major metro cities with highest cost of living. Rates are highest in this zone.
Examples
Mumbai, Delhi NCR, Bengaluru, Chennai
Zone B
Large urban municipalities. Rates sit below Zone A but above smaller towns.
Examples
Pune, Surat, Ahmedabad, Coimbatore
Zone C
Tier-3 cities, municipal councils, and industrial townships.
Examples
Aurangabad, Mysuru, Indore, Kochi
Zone D
Rural areas and smaller towns. Lowest rates, but bound by National Floor Wage.
Examples
Village panchayats, rural clusters
Code on Wages 2019 — Key Changes
Consolidates 4 wage-related acts into one code that introduces a statutory floor wage framework.
Universal Floor Wage
Central government sets a national floor wage. States cannot notify rates below this floor.
Unorganised Sector
Extends minimum wage coverage to unorganised sector workers across India for the first time.
Replaces 4 Acts
Subsumes the Minimum Wages Act 1948, Payment of Wages Act 1936, Bonus Act 1965, Equal Remuneration Act 1976.
5-Year Revision Cycle
Mandates review of minimum wages by states every five years to keep pace with cost of living.
Underpayment penalties under the Minimum Wages Act
Section 22 of the Minimum Wages Act 1948 sets clear penalties for paying below notified rates.
Imprisonment
Up to 5 years for repeated or wilful violations under Section 22
Fine
Up to Rs 1 lakh per offence, may be combined with imprisonment
Employee Compensation
Shortfall amount plus compensation up to 10 times the shortfall
Inspector Powers
Labour Inspectors can enter premises, inspect records, and file suit
Minimum Wages: common questions
Stop tracking 36 state notifications manually
factoHR India auto-applies state-wise minimum wage rates by skill and zone, refreshes VDA, and keeps your Indian payroll audit-ready. Backed by factoHR.