Minimum wage is the level of income for workers to ensure a standard of living for them. It also aims to prevent the exploitation of workers. At present, the Minimum Wages Act, 1948 (‘the Act’) governs the fixation of the minimum wage in certain scheduled employments. The relevant State Government sets prescribed minimum wages for the State below which an employer cannot pay to its employees in scheduled employment.

The wage rates in scheduled employment differ across states, sectors, skills and occupations based on various factors. Hence, there is no single uniform minimum wage rate across the country and the revision cycle differs for each state.

On 8th August 2019,  parliament had passed the Code on Wages Act, 2019 (‘the Code’)  to replace four labour regulations – Minimum Wages Act, 1948, Payment of Wages Act, 1936,  Payment of Bonus Act, 1965 and Equal Remuneration Act, 1976. However, the effective date for implementation of the Code is yet to be notified by the Government, therefore, till such date, the Act will continue to govern minimum wages.

1.   Minimum rate of wages

Any minimum rate of wages fixed or revised by the appropriate Government in respect of scheduled employments may consist of-

(i)       a basic rate of wages and a special allowance varying with the cost of living allowance; or

(ii)      a basic rate of wages with or without the cost of living allowance

(iii)     cash value of the concessions in respect of supplies of essential commodities at concessional rates, where so authorised; or

(iv)  inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.

Meaning of wages

The term “wages” means all remuneration in money to be payable to a person employed in respect of his employment or of work done in such employment and includes house rent allowance.

Wages do not include the following items-

• the value of  any house-accommodation, supply of light, water, medical attendance; or

• the value of any other amenity or any service excluded by general or special order of the appropriate Government;

• any contribution paid by the employer to any pension fund or provident fund or under any scheme of social insurance;

• any travelling allowance or the value of any travelling concession;

• any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or

• any gratuity payable on discharge 

2.   Fixation of minimum wages

The appropriate Government fixes the minimum wages payable to employees employed in scheduled employments and in employment added to either part. The rates may be fixed basis the number of hours worked, number of pieces made guaranteed time rate and overtime rate.

3.   Revision of minimum wages

All the minimum wages so fixed shall be reviewed by an appropriate Government after every five years.

4.   Procedure for fixation and revision of minimum wages

While fixing minimum rates of wages in respect of any scheduled employment for the first time or revising minimum rates of wages so fixed, appropriate Government can adopt any of the following two modes –

(i) Appointing as many committees and subcommittees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be, or

(ii) By publishing its proposals in notification in the official gazette for the information of persons likely to be affected. In such notification, a date (not less than two months) shall be specified on which the proposals will be taken into consideration.

5.   Revision of minimum wages in Delhi

On 11^th November 2021, vide F.No.12 (142)/02/MW/VIII/Part file 4456, the Government of National Capital Territory of Delhi had revised the rates of minimum wages which shall be applicable w.e.f 1st October 2021. The revised rates in respect of unskilled, semiskilled, skilled and clerical and supervisory staff categories in all schedules employment are:

Class of employment	Category of workers	Basic rates per month	Dearness allowance per month
Unskilled	Not applicable	16,064	618
Semi-skilled	Not applicable	17,693	681
Skilled	Not applicable	19,473	749
Clerical and supervisory staff	Non matriculates	17,693	681
Clerical and supervisory staff	Matriculate but not graduate	19,473	749
Clerical and supervisory staff	Graduate and above	21,184	815

6.   Minimum wages in a few other States

(i)                         Gujarat

Class of Employment	Zone	Basic Per Day	VDA Per Day	Total Per Day	Total Per Month
Unskilled	Zone I	276	72	348	9,048
Unskilled	Zone II	268	72	340	8,840
Semi-Skilled	Zone I	284	72	356	9,256
Semi-Skilled	Zone II	276	72	348	9,048
Skilled	Zone I	293	72	365	9,490
Skilled	Zone II	284	72	356	9,256

(ii)                     Maharashtra

Class of Employment	Zone	Basic Per Month	HRA Per Month	VDA Per Month	Total Per Day	Total Per Month
Unskilled	Zone I	10,021	573	1,430	440	11,451
Unskilled	Zone II	9,425	543	1,430	418	10,855
Unskilled	Zone III	8,828	513	1,430	395	10,258
Semi-skilled	Zone I	10,856	614	1,430	473	12,286
Semi-skilled	Zone II	10,260	585	1,430	450	11,690
Semi-skilled	Zone III	9,664	555	1,430	427	11,094
Skilled	Zone I	11,632	653	1,430	502	13,062
Skilled	Zone II	11,036	623	1,430	479	12,466
Skilled	Zone III	10,440	594	1,430	457	11,870
Security Guard/Lady Security Guard – Security Services	Mumbai/Thane	12,082	2,702	1,430	520	13,512
Head Guard – Security Services	Mumbai/Thane	12,357	2,757	1,430	530	13,787
Security Supervisor – Security Services	Mumbai/Thane	13,057	2,897	1,430	557	14,487
Assistant Security Officer – Security Services	Mumbai/Thane	13,282	2,942	1,430	566	14,712
Security Officer – Security Services	Mumbai/Thane	13,732	3,032	1,430	583	15,162
Chief Security Officer – Security Services	Mumbai/Thane	14,182	3,122	1,430	600	15,612
Security Guard/Lady Security Guard – Security Services	Pune	7,400	1,938	5,522	497	14,860
Head Guard – Security Services	Pune	7,500	1,953	5,522	501	14,975
Security Supervisor – Security Services	Pune	8,000	2,028	5,522	520	15,550
Assistant Security Officer – Security Services	Pune	8,500	2,103	5,522	539	16,125
Security Officer – Security Services	Pune	9,000	2,178	5,522	559	16,700
Chief Security Officer – Security Services	Pune	9,400	2,238	5,522	574	17,160

(iii)                  Haryana

Class of Employment	Qualification & experience	Basic Per Month	Total Per Day	Total Per Month
Unskilled	NA	7,600	377.04	9,803.24
Semi-Skilled Class A	NA	7,980	395.89	10,293.36
Semi-Skilled Class B	NA	8,379	415.69	10,808.02
Skilled Class A	NA	8,797.95	436.47	11,348.43
Skilled Class B	NA	9,237.85	458.3	11,915.86
Highly Skilled	NA	9,699.74	481.21	12,511.65
Clerical & General Staff	Below Matriculation	7,980	395.89	10,293.36
Clerical & General Staff	Matriculation but not Graduate	8,379	415.69	10,808.02
Clerical & General Staff	Graduate or Above	8,797.95	436.47	11,348.43
Clerical & General Staff	Steno Typist	8,379	415.69	10,808.02
Clerical & General Staff	Junior Scale Stenographer	8,797.95	436.47	11,348.43
Clerical & General Staff	Senior Scale Stenographer	9,237.85	458.3	11,915.86
Clerical & General Staff	Personal Assistant	9,699.74	481.21	12,511.65
Clerical & General Staff	Private Secretary	10,184.73	505.27	13,137.23
Data Entry Operator	NA	8,797.95	436.47	11,348.43
Driver	Light Vehicle	9,237.85	458.3	11,915.86
Driver	Heavy Vehicle	9,699.74	481.21	12,511.65
Security Guard	Without Weapon	7,980	395.89	10,293.36
Security Guard	With Weapon	9,237.85	458.3	11,915.86

(iv)                   Rajasthan

Class of Employment	Total Per Day	Total Per Month
Skilled	276	7,176
Unskilled	252	6,552
Semi-skilled	264	6,864
Highly Skilled	326	8,476

(v)                       Uttar Pradesh

Class of Employment	Basic Per Month	VDA Per Month	Total Per Day	Total Per Month
Unskilled	5,750	3,434	353.23	9,184
Semi-skilled	6,325	3,777.29	389	10,102.29
Skilled	7,085	4,231.16	435.23	11,316.16

7.   Punishment for contravention

Any employer who-

(a) pays to any employee less than the minimum rates of wages fixed for that employee’s class of work or less than the amount due to him under the provisions of this Act or

(b) contravenes any rule or order made under section 13 relating to fixing working hours in the normal working day;

can be punishable with imprisonment for a term which may extend to six months or with a fine which may extend to five hundred rupees or with both:

The court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 20 while imposing any fine for an offence.