National minimum wage in detail

In India, the provision for minimum wages for employees working in certain specified professions is determined by the Government. The minimum wage requirement applies largely to employees who qualify as ‘workmen’ (i.e. blue-collar employees) and work in the relevant professions.

The minimum wages need not be paid only through basic salary. Minimum wages can include an allowance for rent but must not include statutory bonuses, contributions towards social security, travel allowances or tips.

The power to fix minimum wages lies with the Federal Government and the various State Governments in India. Hence, the rate of the minimum wage varies from region to region. For example, the minimum wage rates for unskilled, semi-skilled and skilled work categories in all types (i.e. schedules) of employment except in shops and clubs in West Bengal effective from January 1, 2019   are as follows (figures in INR):

Class of Employment

Zone

Total per day

Total per month

Unskilled

Zone A

308

8,005

Unskilled

Zone B

279

7,245

Semi Skilled

Zone A

339

8,806

Semi Skilled

Zone B

306

7,968

Skilled

Zone A

373

9,687

Skilled

Zone B

337

8,765

Highly skilled

Zone A

410

10,655

Highly skilled

Zone B

371

9,643

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Author: Kochhar & Co.

Date: April 2020


Note: For specific advice on any particular issue, please consult the relevant firm. The law is stated as at March 2019.