Latest Minimum Wages in India 2025

In India, the Minimum Wages Act, 1948, ensures that a minimum wage is provided to the workers covered under the Act. However, each state has its own minimum wage rates, for different categories. Both skilled and unskilled workers receive the minimum wages fixed by state governments. This ensures a basic standard of living for the residents of the state. 

This article explains the minimum wage in India, how it is calculated, and other crucial details.

What is the Minimum Wage in India?

The Indian parliament enacted the Minimum Wage Act in 1948 to set minimum wages for specific ‘scheduled employment’ categories across the country. These are the minimum wages that employers must pay to workers. They apply to both skilled and unskilled workers. 

‘Scheduled employment’ refers to jobs listed under the Minimum Wages Act or any process that is part of such employment. However, if the industry employs fewer than 1,000 workers in that state, the fixed minimum wage does not apply.

Minimum Wage in India Per Day

The minimum wages per day for workers in India vary based on the state where they work, their level of skills, and the industry. The Central Government of India revises workers’ minimum wage from time to time, usually twice a year, in April and October. The government recently revised the minimum wage per day rate effective 1 October 2024. 

Currently, the lowest minimum wage is Rs. 783 per day (for unskilled labourers), and the highest minimum wage increased to Rs. 1,035 a day (for highly skilled workers). 

Minimum Wage in India Per Month

In India, an employee’s monthly minimum wage varies depending on several factors, such as the state or union territory, the industry, and the worker’s skill level (unskilled, semi-skilled, skilled, or highly skilled). Each state has its own minimum wage laws, which can also include variations based on urban, semi-urban, and rural areas. The following mentions the minimum wage of different skill level workers per month fixed by the Central Government:

• Unskilled workers - Rs. 20,358 per month
• Semi-skilled workers - Rs. 22,568 per month
• Skilled workers - Rs. 24,804 per month
• Highly skilled workers - Rs. 26,910 per month

Minimum Wage for Skilled Labour in India

The Central Government has fixed the minimum wage in India for skilled labourers at Rs. 24,804 per month or Rs. 954 per day. However, this rate may vary from state to state, depending on the work nature and location. Skilled labourers perform certain tasks and duties that require little assistance. They need to be proficient at completing tasks and provide high-quality work.

Minimum Wage for Unskilled Labour in India

The Central Government has fixed the minimum wage for unskilled labourers in India at Rs. 20,358 per month or Rs. 783 per day. However, this rate varies depending on the state, work, and location. Unskilled labourers are those who do basic tasks and duties not requiring any prior work experience. These labourers require minimal training at the early stage to familiarise themselves with the tools and machines they will use.

Minimum Wage in India State-Wise

The following table highlights the state-wise minimum wage in India:

How to Calculate Minimum Wages in India?

In India, minimum wage calculation follows the 26-day rule, based on a six-day workweek, although most employees are typically paid for all 30 days. Each state in India determines and revises its own minimum wage, considering various elements. 

Wages are generally set daily and include a Variable Dearness Allowance (VDA) provided to unorganised workers. The minimum wages are calculated based on factors like the nature of the work, the worker’s skill level, and the cost of living. The state government determines minimum wages based on the Consumer Price Index (CPI) for industrial workers to adjust for inflation. 

State governments fix the minimum wage rates for the following work:

• Time-rate work
• Piece-rate work
• Overtime work

Several factors influence the minimum wage across states, depending on local conditions. Important considerations include:

• State’s average income levels
• Cost of essential commodities
• Worker productivity
• Local economic conditions

These factors shape how minimum wages are set and adjusted across different regions in India.

The minimum wage in India plays a crucial role for both employers and employees. They help prevent worker exploitation and ensure that employees earn enough to support their families. Additionally, employers need to understand and adhere to these laws to avoid legal complications and ensure their workforce is fairly compensated.

Related Articles:
Minimum Wages in MP
Minimum Wages in Haryana
Minimum Wages in Rajasthan
Minimum Wages Act
Minimum Wages in Odisha
Minimum Wages in Uttarakhand
Minimum Wages in Bihar
Minimum Wages in Kerala
Minimum Wages in Delhi
Minimum Wages in UP