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All-in-one HR platform · v2.0
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Under the Minimum Wages Act, central and state governments fix minimum rates for scheduled employments. Most rates are set by states and revised regularly, often with a variable dearness allowance.
Check before you rely on thisCheck the current minimum wage notification for each state and employment, skill category and zone, the latest variable DA revision and its effective date, and whether the Code on Wages minimum wage provisions now apply.
01
The Act empowers the appropriate government to fix and revise minimum rates of wages for employments listed in its schedule. Rates usually vary by employment, by skill category (unskilled, semi-skilled, skilled, highly skilled) and by zone, and many include a variable dearness allowance revised periodically against a price index.
02
It applies to employees in scheduled employments for which a minimum wage has been fixed. The central government fixes rates for employments in its sphere, and states fix rates for the rest. This page does not list rates; they vary by state and change by notification.
03
Watch for itVariable DA revisions can arrive mid-year. Payroll needs a way to apply a new rate from its effective date and pay arrears if it was missed.
04
| Term | What it means |
|---|---|
| Scheduled employment | An employment listed in the Act's schedule, for which rates are fixed |
| Variable dearness allowance | The part of the minimum wage revised against a cost-of-living index |
| Skill category | The classification that decides which rate applies |
| Zone | The geographical area a rate applies to, where a state divides rates by area |
05
The four labour codes, passed by Parliament in 2019 and 2020, came into force on 21 November 2025. Final central rules under all four codes were notified on 8 May 2026, and each state frames its own rules, some of which are still in draft. During the transition, the relevant provisions of the earlier Acts and their rules continue to apply, so check which rules govern your establishment in each state.
The Minimum Wages Act is among the laws consolidated into the Code on Wages, which provides for minimum wages for employees more broadly and a central floor wage.
From the notification of the appropriate government: the state labour department for most employments, or the central government for central sphere employments.
It depends on how the Act and the notification define the minimum rate. Check which components may be counted before relying on allowances.
Pay the difference as arrears from the effective date. Underpayment can lead to claims and penalties.
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