Skip to content
India · Updated June 2026

Minimum Wages in India
2026 - State-Wise Rates

There is no single minimum wage in India. Each state sets its own legally enforceable rates - varying by zone, skill level and industry. This guide explains how minimum wages work and links to the latest state-wise rate cards.

Quick Answer

India’s Central Government sets a non-binding national floor wage (~₹178/day), but the enforceable minimum wage is fixed by each state and varies widely - from roughly ₹12,000-15,000/month for unskilled shop workers in many states to ₹30,000+/month for highly-skilled workers in Karnataka’s Zone 1 (Bengaluru) after its 2026 revision.

What Decides Your Minimum Wage in India

1. Skill level

Unskilled, semi-skilled, skilled and highly-skilled bands - each with its own rate.

2. Zone / area

Cities and corporations (Zone A / Zone 1) pay more than smaller towns and rural areas.

3. Industry / employment

Each scheduled employment (shops, construction, security, factories…) has its own schedule.

4. VDA (inflation)

A CPI-linked Variable Dearness Allowance is added to Basic and revised periodically.

How it is calculated

Minimum Wage = Basic Pay + VDA

On top of the minimum wage, the employer also pays PF (12% of basic), ESI (3.25% of gross, if wage ≤ ₹21,000), statutory bonus and a gratuity provision - so the true cost to company is higher than the notified wage.

Penalty for Non-Compliance

Under the Code on Wages, 2019 (in force across India from 21 November 2025), the penalty for paying below the notified minimum wage is the same in every State and Union Territory: a fine up to ₹50,000 for a first offence, and imprisonment up to 3 months or a fine up to ₹1,00,000 (or both) for a repeat offence within five years, plus full payment of wage arrears. Failing to maintain the prescribed wage and attendance registers carries a further fine up to ₹10,000. Each State and UT Labour Department enforces this through Inspector-cum-Facilitator inspections, so employers across India should keep payroll and statutory registers audit-ready year-round.

Source: Code on Wages, 2019 (Act 29 of 2019), Sec. 54 · Ministry of Labour & Employment

Free Minimum Wage Compliance Checklist (India)

A one-page PDF for HR & payroll teams - zone & skill bands explained, VDA, the statutory add-ons (PF/ESI/bonus/gratuity) and the most common minimum-wage compliance mistakes to avoid.

Frequently Asked Questions

What is the minimum wage in India in 2026?

There is no single national minimum wage. The Central Government sets a non-binding national floor wage (about Rs.178/day), but the actual, legally enforceable minimum wage is set by each state and varies by zone, skill level and industry. For example, Tamil Nadu shops range about Rs.13,823-14,743/month, while Karnataka shops (after its May 2026 revision) run about Rs.19,319-31,114/month.

Who sets minimum wages in India?

Both the Central and State Governments. Most workers are covered by state notifications under the Minimum Wages Act, 1948 (now read with the Code on Wages, 2019). Each state issues its own schedule of rates and revises the VDA periodically.

What decides how much minimum wage applies to a worker?

Four things: skill level (unskilled, semi-skilled, skilled, highly-skilled), the zone or area of the workplace, the scheduled employment / industry, and the current VDA (inflation component). Two workers doing similar jobs can have different minimum wages in different zones or states.

What is VDA in minimum wages?

VDA stands for Variable Dearness Allowance - the inflation-linked part of the minimum wage, calculated from the Consumer Price Index and revised periodically (annually or half-yearly, depending on the state). The total minimum wage is Basic + VDA.

Which states have the highest and lowest minimum wages?

It varies by category and changes with each revision. Among large states, Delhi, Kerala and (after 2026) Karnataka are typically at the higher end; some northern and eastern states sit lower. Always compare the specific scheduled employment and zone.

Does the Code on Wages 2019 replace state minimum wages?

The Code on Wages, 2019 came into force in November 2025, but existing state minimum wage notifications continue to apply under the repeal-and-savings provisions until each state notifies its rules under the Code. So current state notifications remain enforceable.

Is minimum wage the same as take-home salary?

No. Minimum wage is the gross statutory floor paid to the worker. On top of it employers pay PF, ESI (where applicable), bonus and gratuity provisions; from it, employee PF, ESI and professional tax may be deducted. Take-home differs from the gross minimum wage.

How often do minimum wages change?

The Basic component is revised every few years; the VDA is revised much more often - annually in many states, half-yearly in some, and monthly in Kerala. Because of this, any rate should always carry an as-of date and be checked against the latest notification.

Stay compliant in every state, automatically

factoHR Chennai applies zone-wise minimum wages, VDA, PF, ESI and PT, and generates statutory-compliant payslips and registers - so multi-state teams stay compliant without manual tracking.