MINIMUM WAGE RATES IN INDIA

Overview : Applicability, Central & State-wise Applicable Minimum Wage Rates

Write With Lawrbit
Akshit Rai
Akshit Rai

Published on: Mar 3, 2023

Aparna Kashyap
Aparna Kashyap

Updated on: Mar 11, 2023

(20 Ratings)
2932

INTRODUCTION

The term ‘minimum wages’ stands for the lowest amount of remuneration that an employer is required to pay wage earners for the work performed during a given period. Minimum wages are wages paid to skilled and unskilled labors to maintain a level of employment. The concept of minimum wages guarantees basic livelihood and preserves efficiency and a level of comfort for the worker.

The Minimum rates of wages payable by the Employer for the Scheduled Employments issued by the Central and respective State Governments in India. These minimum wage rates are issued under the Minimum Wages Act, 1948 wherein the rates are payable followed by the Employers, Managers or Contractors of any Establishment, Factory, Mine, Industrial Undertaking, etc. while making payments to their workers and employees.

The Central or the State government has issued the rates with revisions based on the classes of workers i.e. Skilled, Un-Skilled, Semi-skilled, Highly Skilled, etc.

Applicability and Scope of Minimum Wages Act:

This Act applies to the whole of India as laid down in Section 1 of the Act. It applies to any employment which employs 1000 employees in the State and to establishments under the authority of the Central Government, Railway Administration, Mines, Oil Fields, Major Ports, or any corporation established by the Central Government. It does not apply to any employees in any undertaking owned by the Central Government or the Federal Railway, except with the consent of the Central Government. This Act facilitates the following:

  1. To provide the employee with necessities, proper health and comfort.
  2. To ensure that the employee gets fair wages.
  3. To fix the working hours of the employees.

HOW ARE MINIMUM WAGES CALCULATED IN INDIA?

Minimum Wages are calculated based on the following factors:

  1. State
  2. Areas within the State based on the development
  3. Industry
  4. Occupation and Skill level

Consumer Price Index (CPI)

The CPI is a measure to assess the changes over time in the general level of prices of goods and services that a reference population acquires, uses or pays for consumption. It is used as an essential economic tool by Central and State Governments, the Reserve Bank of India, for maintaining money supply and price stability.

A CPI is assessed as a progression of outline measures of the period-to-period corresponding change in the costs of a proper set of consumer goods and services of constant quantity and qualities, gained, utilized or paid for by the reference population. Every outline measure is developed as a weighted average of an enormous number of elementary total indices.

Each of the elementary total indices is assessed involving an example of costs for a characterized set of goods and services obtained, or by occupants of, a particular area from a given set of outlets or different sources of the utilization of goods and services.

Base Index or Wage Rate Index (WRI)

The WRI Number estimates the general changes in wage rates throughout a span of time, high or low WRI in an industry does not guarantee to demonstrate a high or low wage rate in that industry when collated with different Employments.

A base year is the first of a progression of years in an economic or financial index and is distinctively set to an arbitrary level of 100.

The Ministry of Labour and Employment released the Wage Rate Index based on Base Year, which is compiled and maintained by the Labour Bureau on the recommendations of the International Labour Organization and the National Statistical Commission.

CONCLUSION

Minimum Wages Act was enacted to safeguard the rights and interests of the workers working in some scheduled class of employment which is laid down under the Act. After the enactment of the Labour Codes, it will bring the gig workers and inter-state migrant workers into the ambit of social security. This will impact minimum wage considerations and will make it easier and more flexible in their hiring and firing decisions as well as shutting down operations in the country. The new labour codes aim to balance the welfare of employees and ease the burden of compliance for Employers in India.

Published Minimum Wage Rates Awaited Minimum Wage Rates

Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh Ladakh Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttar Pradesh Uttarakhand West Bengal Andaman and Nicobar Islands Chandigarh Dadra and Nagar Haveli Daman and Diu Lakshadweep National Capital Territory of Delhi Puducherry Jammu and Kashmir
Central Minimum Wage Rates
Release Date
  1. 31-03-2022
  2. 29-07-2022
  3. 28-09-2022
  4. 11-10-2022
Effective Date
  1. 01-04-2022
  2. 01-04-2022
  3. 01-10-2022
  4. 01-10-2022
Minimum Wage Rates of Rajasthan
Release Date
  1. 03-08-2022
  2. 05-01-2023
  3. 28-06-2022
  4. 14-10-2022
  5. 23-09-2022
Effective Date
  1. 01-01-2022 to 01-06-2022
  2. 01-01-2022 to 01-09-2022
  3. 01-07-2022, 01-07-2022
  4. 01-10-2022 to 30-09-2023
S.No Central / State / UT Release Date Effective Date
1 Central 31-03-2022, 29-07-2022, 28-09-2022, 11-10-2022 01-04-2022, 01-04-2022, 01-10-2022, 01-10-2022
2 Andhra Pradesh 24-08-2022, 27-09-2022 24-08-2022, 01-10-2022
3 Arunachal Pradesh NA NA
4 Assam 16-03-2022, 22-08-2022, 31-08-2022, 26-04-2022 01-12-2021, 01-08-2022, 01-07-2022, 01-12-2021
5 Andaman and Nicobar 11-01-2022, 29-07-2022, 29-12-2022 01-01-2022, 01-07-2022, 01-01-2023
6 Bihar 30-03-2022, 30-03-2022, 30-03-2022, 30-03-2022, 31-08-2022 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-10-2022
7 Chhattisgarh 25-3-2022, 28-09-2022 01-04-2022, 01-10-2022
8 Chandigarh 18-05-2022 01-04-2022 to 30-09-2022
9 Delhi 23-05-2022, 14-10-2022 01-04-2022, 01-10-2022
10 Dadar and Nagar Haveli & Daman and Diu NA NA
11 Gujarat 2-10-2022, 05-09-2022 01-07-2022 to 01-08-2022, 01-10-2022
12 Goa 02-05-2022, 10-11-2022 01-04-2022, 10-11-2022
13 Haryana 08-04-2022 01-01-2022
14 Himachal Pradesh 25-05-2022 01-04-2022
15 Jharkhand 13-04-2022 01-04-2022
16 Jammu & Kashmir 11-10-2022 17-10-2022
17 Karnataka 28-07-2022 01-04-2022 to 31-03-2023, 28-07-2022
18 Kerala 08-03-2022, 04-04-2022, 12-05-2022, 09-06-2022, 02-07-2022, 12-08-2022, 20-09-2022, 22-12-2022 01-01-2022, 01-02-2022, 01-03-2022, 01-04-2022, 01-05-2022, 01-06-2022, 01-07-2022, 01-10-2022
19 Ladakh NA NA
20 Lakshadweep NA NA
21 Madhya Pradesh 29-09-2022, 30-03-2022, 29-03-2022 01-10-2022 to 31-03-2022, 01-04-2022 to 31-03-2022, 01-04-2022 to 30-09-2022
22 Maharashtra 02-02-2022 02-02-2022 to 30-06-2022
23 Manipur NA NA
24 Meghalaya 31-03-2022, 21-10-2022 01-04-2022, 01-10-2022
25 Mizoram NA NA
26 Nagaland NA NA
27 Odisha 30-04-2022, 19-10-2022 01-04-2022 to 01-10-2022, 01-04-2022 to 01-10-2022
28 Puducherry NA NA
29 Punjab 11-10-2022 01-03-2022 to 01-09-2022
30 Rajasthan 03-08-2022, 05-01-2023, 28-06-2022, 14-10-2022, 23-09-2022 01-01-2022 to 01-06-2022, 01-01-2022 to 01-09-2022, 01-07-2022, 01-07-2022, 01-10-2022 to 30-09-2023
31 Sikkim 14-09-2022 01-10-2022
32 Tripura 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022, 28-06-2022 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022, 01-04-2022
33 Tamil Nadu 10-06-2022, 29-06-2022, 06-07-2022 10-06-2022, 29-06-2022, 06-07-2022
34 Telangana 01-01-2022 30-06-2022
35 Uttar Pradesh 01-02-2022 to 06-07-2022, 06-07-2022 01-02-2022 to 06-07-2022, 01-07-2022
36 Uttarakhand 31-03-2022, 08-08-2022, 26-09-2022 01-04-2022 to 30-09-2022, 01-08-2022 to 30-01-2022, 01-10-2022 to 31-03-2022
37 West Bengal 24-01-2022, 31-01-2022, 06-07-2022, 06-07-2022, 06-07-2022, 16-01-2023 01-01-2022 to 01-07-2022

Disclaimer

The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.

Tell us how helpful was this post?

Subscribe Newsletter Request a demo Contact Us