Revision in Minimum Wages by the Government of National Capital Territory of Delhi

Revision in Minimum Wages by the Government of National Capital Territory of Delhi

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 11th 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 employmentCategory of workersBasic rates per monthDearness allowance per month
UnskilledNot applicable16,064618
Semi-skilledNot applicable17,693681
SkilledNot applicable19,473749
Clerical and supervisory staffNon matriculates17,693681
Clerical and supervisory staffMatriculate but not graduate19,473749
Clerical and supervisory staffGraduate and above21,184815

6.   Minimum wages in a few other States

(i)                         Gujarat

Class of EmploymentZoneBasic Per DayVDA Per DayTotal Per DayTotal Per Month
UnskilledZone I276723489,048
UnskilledZone II268723408,840
Semi-SkilledZone I284723569,256
Semi-SkilledZone II276723489,048
SkilledZone I293723659,490
SkilledZone II284723569,256

(ii)                     Maharashtra

Class of EmploymentZoneBasic Per MonthHRA Per MonthVDA Per MonthTotal Per DayTotal Per Month


Zone I
  10,021    573  1,430  44011,451


Zone II
   9,425    543  1,430  41810,855


Zone III
    8,828    513  1,430  39510,258
Semi-skilledZone I  10,856    614  1,430  47312,286
Semi-skilledZone II  10,260    585  1,430  45011,690
Semi-skilledZone III    9,664    555  1,430  42711,094
SkilledZone I  11,632    653  1,430  50213,062
SkilledZone II  11,036    623  1,430  47912,466
SkilledZone III  10,440    594  1,430  45711,870
Security Guard/Lady Security Guard – Security ServicesMumbai/Thane  12,082  2,702  1,430  52013,512
Head Guard – Security ServicesMumbai/Thane  12,357  2,757  1,430  53013,787
Security Supervisor – Security ServicesMumbai/Thane  13,057  2,897  1,430  55714,487
Assistant Security Officer – Security ServicesMumbai/Thane  13,282  2,942  1,430  56614,712
Security Officer – Security ServicesMumbai/Thane  13,732  3,032  1,430  58315,162
Chief Security Officer – Security ServicesMumbai/Thane  14,182  3,122  1,430  60015,612
Security Guard/Lady Security Guard – Security ServicesPune    7,400  1,938  5,522  49714,860
Head Guard – Security ServicesPune    7,500  1,953  5,522  50114,975
Security Supervisor – Security ServicesPune    8,000  2,028  5,522  52015,550
Assistant Security Officer – Security ServicesPune    8,500  2,103  5,522  53916,125
Security Officer – Security ServicesPune    9,000  2,178  5,522  55916,700
Chief Security Officer – Security ServicesPune    9,400  2,238  5,522  57417,160

(iii)                  Haryana

Class of EmploymentQualification & experienceBasic Per MonthTotal Per DayTotal Per Month
Semi-Skilled Class ANA7,980395.8910,293.36
Semi-Skilled Class BNA8,379415.6910,808.02
Skilled Class ANA8,797.95436.4711,348.43
Skilled Class BNA9,237.85458.311,915.86
Highly SkilledNA9,699.74481.2112,511.65
Clerical & General StaffBelow Matriculation7,980395.8910,293.36
Clerical & General StaffMatriculation but not Graduate8,379415.6910,808.02
Clerical & General StaffGraduate or Above8,797.95436.4711,348.43
Clerical & General StaffSteno Typist8,379415.6910,808.02
Clerical & General StaffJunior Scale Stenographer8,797.95436.4711,348.43
Clerical & General StaffSenior Scale Stenographer9,237.85458.311,915.86
Clerical & General StaffPersonal Assistant9,699.74481.2112,511.65
Clerical & General StaffPrivate Secretary10,184.73505.2713,137.23
Data Entry OperatorNA8,797.95436.4711,348.43
DriverLight Vehicle9,237.85458.311,915.86
DriverHeavy Vehicle9,699.74481.2112,511.65
Security GuardWithout Weapon7,980395.8910,293.36
Security GuardWith Weapon9,237.85458.311,915.86

(iv)                   Rajasthan

Class of EmploymentTotal Per DayTotal Per Month
Highly Skilled3268,476

(v)                       Uttar Pradesh

Class of EmploymentBasic Per MonthVDA Per MonthTotal Per DayTotal Per Month

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.

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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