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 Effective date:1st Jul, 2023 | ||
| Andhra Pradesh Effective date:1st Apr, 2023 | Arunachal Pradesh Effective date:1st Apr, 2016 | Assam Effective date:1st Dec, 2021 |
| Bihar Effective date:1st Apr, 2023 | Chandigarh Effective date:1st Oct, 2022 | Chhattisgarh Effective date:1st Apr, 2023 |
| Dadra and Nagar Haveli Effective date:1st Apr, 2023 | Daman and Diu Effective date:1st Apr, 2023 | Delhi Effective date:1st Apr, 2023 |
| Goa Effective date:11th Aug, 2023 | Gujarat Effective date:1st Apr, 2023 | Haryana Effective date:1st Jul, 2023 |
| Himachal Pradesh Effective date:1st Apr, 2023 | Jammu and Kashmir Effective date:17th Oct, 2022 | Jharkhand Effective date:1st Apr, 2023 |
| Karnataka Effective date:1st Apr, 2023 | Kerala Effective date:1st Jul, 2023 | Ladakh Effective date:2nd Nov, 2022 |
| Madhya Pradesh Effective date:1st Apr, 2023 | Maharashtra Effective date:1st Jul, 2023 | Manipur Effective date:27th Dec, 2016 |
| Meghalaya Effective date:1st Oct, 2022 | Mizoram Effective date:1st Apr, 2023 | Nagaland Effective date:14th Jun, 2019 |
| Odisha Effective date:1st Apr, 2023 | Puducherry Effective date:1st Jan, 2020 | Punjab Effective date:1st Mar, 2023 |
| Rajasthan Effective date:1st Jul, 2021 | Sikkim Effective date:11th Jul, 2022 | Tamil Nadu Effective date:1st Apr, 2023 |
| Telangana Effective date:1st Apr, 2023 | Tripura Effective date:1st Apr, 2023 | Uttar Pradesh Effective date:1st Apr, 2023 |
| Uttarakhand Effective date:1st Apr, 2023 | West Bengal Effective date:1st Jul, 2023 |
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.
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