How do minimum wage and floor wage work in India now?
Minimum wage and floor wage in India now work under the Code on Wages, 2019, which gives every employee a right to minimum wages, instead of only workers in scheduled employments. The Central Government fixes a floor wage, and no appropriate government can set a minimum wage below it. The minimum is a legal floor, not a market salary.
At a glance
- Minimum wages apply to organised and unorganised work (PIB).
- The Central Government fixes the floor wage, which may differ by area.
- States and the Centre fix minimum wages at or above the floor.
- An employer may not pay less than the prescribed minimum.
Floor wage and minimum wage in India
Section 9 says the Central Government fixes the floor wage taking into account minimum living standards, and may set different floor wages for different areas. If a government's earlier minimum is higher than the floor, it is not reduced.
Who fixes minimum wages
The appropriate government decides rates by skill level (unskilled, semi-skilled, skilled, highly skilled), geographical area and job conditions such as heat, humidity or hazard. For central-sphere establishments that is the Central Government; for most others, the state.
Minimum wage versus wages
The Ministry notes that minimum wages are fixed by the government, whereas wages are what the terms of employment provide within the Code's definition. An employer is legally prohibited from paying less than the minimum.
How to find your rate
- Check the notification of your state labour department or the Central government for your scheduled work and area.
- Check the Gazette of India for notifications.
- Ask HR to show the rate used for your category.
We do not publish a national daily figure, because rates differ by state, sector and skill and change by notification.
Overtime, deductions and equal pay
See Code on Wages and working hours and overtime. See also minimum wages.
Rules you can check on your payslip
| Topic | What the Ministry's handbook and FAQs say |
|---|---|
| Overtime | If an employee whose minimum rate of wages is fixed works beyond normal hours, the employer pays overtime for each extra hour at least twice the normal wage. |
| Deductions | Only those authorized under the Code, such as absence, damage or loss, advances and fines after a hearing. They must not exceed 50 percent of wages in the wage period. |
| Wage slip | Issued on or before payment of wages, in the prescribed form. |
| Notice board | Must show the minimum rate of wages, normal working hours, wage period, wage payment date and the Inspector-cum-Facilitator. |
| Equal pay | No gender discrimination in pay for the same or similar work. |
| Exit | All due wages within two working days of leaving. |
Step by step: check your own pay
- Find your category (skill level) and area from the notification that applies to your work.
- Compare the notified rate with your basic pay plus dearness allowance and the other components in your payslip.
- Check overtime hours against the overtime register, if your minimum rate is fixed under the Code.
- Look at deductions. Ask HR to name the legal basis for each.
- If you still see a gap, ask HR in writing. Keep your payslips.
The 50 percent rule in one paragraph
Wages covers basic pay, dearness allowance and retaining allowance. If other allowances exceed 50 percent of total remuneration, the excess is added back to wages. The Ministry's FAQs say the definition has applied since 21 November 2025, applies across all four labour codes, and does not include annual performance-based incentives, stock options or reimbursement-based payments.
Common mistakes
- Treating "wages" and "minimum wages" as the same thing. The Ministry says minimum wages are fixed by the appropriate government, while wages are fixed by the terms of employment within the Code's definition.
- Assuming the Code protects only factory workers. The Ministry's FAQs say the timely payment provisions apply to all employees, including white-collar employees.
- Assuming a quoted CTC equals minimum wage compliance.
- Waiting until you leave to ask about deductions.
More questions people ask
Is overtime available to supervisors?
The Ministry's FAQ says an employee, including a worker, whose minimum rate of wages is fixed under the Code is eligible for overtime.
Where do I find my state's notified rate?
On your state labour department's notifications and the Gazette. We do not publish rates because they differ and change.
Sources
- The Code on Wages, 2019 (official text), https://www.labour.gov.in/static/uploads/2025/06/c328da14bbb15fc4ad571dc33e7a4ab3.pdf, checked 2026-10-31
- PIB, Government makes the four Labour Codes effective (21 Nov 2025), https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2192463®=3&lang=2, checked 2026-10-31
- PIB, India's Labour Reforms: Simplification, Security, and Sustainable Growth (21 Nov 2025), https://www.pib.gov.in/PressReleasePage.aspx?PRID=2192524®=3&lang=2, checked 2026-10-31
- Ministry of Labour and Employment, Additional FAQs on Labour Codes (as on 16 Mar 2026), https://www.labour.gov.in/static/uploads/2026/03/a4ccf4c6d97c4f1f36a6d83f8c64213d.pdf, checked 2026-10-31
- The Gazette of India (e-Gazette), https://egazette.gov.in, checked 2026-10-31
- Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes (Central Government sphere): https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf (accessed 31 October 2026)
- Ministry of Labour and Employment, FAQs on Labour Codes (30 December 2025): https://www.labour.gov.in/static/uploads/2026/01/de4758d5bfeffc456d7de97a801891b0.pdf (accessed 31 October 2026)
- Ministry of Labour and Employment, Additional FAQs on Labour Codes (as on 16 March 2026): https://www.labour.gov.in/static/uploads/2026/03/a4ccf4c6d97c4f1f36a6d83f8c64213d.pdf (accessed 31 October 2026)
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.