Glossary · HR, Payroll & Labour Law
Minimum Wages
The minimum statutory wage rate that an employer must pay to a worker, notified by the central or state government for scheduled employments under the Minimum Wages Act, 1948.
The Minimum Wages Act covers employments like agriculture, construction, manufacturing, retail, and domestic work. Wages are revised every 5 years (or earlier). The rate is typically fixed by skill level (unskilled, semi-skilled, skilled, highly skilled) and by area (state-wise and zone-wise). Floor wage is fixed nationally, and state governments cannot fix wages below the floor. VDA (Variable Dearness Allowance) is revised twice a year based on CPI. Penalties for non-payment of minimum wages range from ₹500 to ₹10,000.
Examples
A state notifies minimum wages of ₹600/day for unskilled, ₹700 for semi-skilled, ₹800 for skilled, and ₹900 for highly skilled workers in the construction sector.