Overview of the Minimum Wages Act, 1948 and the Code on Wages, 2019

Overview of the Minimum Wages Act, 1948 and the Code on Wages, 2019

The Minimum Wages Act of 1948 empowers both the Central and State Governments in India to establish, review, and adjust minimum wage rates for employees in scheduled employments. These rates are tailored to reflect the unique economic conditions and needs of different regions, leading to variations across states and sectors.

In 2017, the Central Government revised the minimum wage rates for scheduled employments within its jurisdiction. To address the impact of inflation, the Variable Dearness Allowance (V.D.A) is updated biannually, on April 1 and October 1, based on the Consumer Price Index for Industrial Workers. The latest V.D.A., effective from October 1, 2024, is documented in the relevant annexure.

The Minimum Wages Act has been modernized and incorporated into the Code on Wages, 2019, which establishes a universal minimum wage applicable to all forms of employment. This Code mandates the Central Government to set a floor wage that must be adhered to by both Central and State authorities, ensuring that minimum wages cannot fall below this threshold.

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT

LOK SABHA

UNSTARRED QUESTION NO. 1716
TO BE ANSWERED ON 10.03.2025

MINIMUM WAGE

state: Will the Minister of LABOUR AND EMPLOYMENT be pleased to

(a)the details of minimum wage for various types of workers over the last five years, State wise;

(b)the manner in which the Government overcome the significant regional disparities in minimum wage across the country particularly in the North Eastern Region; and

(c)the steps taken by the Government to enhance the capacity of State-level Wage Boards and ensure that minimum wage revisions are conducted in a timely and evidence-based manner?

ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT

(SUSHRI SHOBHA KARANDLAJE)

(a) to (c): Under the provisions of the Minimum Wages Act 1948, the Central Government and the State Governments, as appropriate Government, fix, review and revise the minimum wages of the employees employed in the Scheduled Employments under their respective jurisdictions. The minimum wage rates are determined and revised according to the specific needs and economic conditions of each region, which results in variations across different States and sectors.

Accordingly, the minimum rates of wages in the scheduled employments in the Central sphere were revised by the Central Government in 2017.

Further, in order to take care of the rising prices, the Central Government revises the Variable Dearness Allowance (V.D.A) on basic rates of minimum wages every six months, effective from 1st April and 1st October of every year on the basis of Consumer Price Index for Industrial workers. Latest V.D.A. as applicable from 01.10.2024 is at Annexure.

Recently, the provisions of the Minimum Wages Act, 1948 have been rationalized and subsumed under the Code on Wages, 2019. The Code on Wages, 2019 provides for universal minimum wage applicable across all employments. The Code further mandates the Central Government to fix floor wage applicable across the Central and the State sphere and the minimum rates of wages fixed by the appropriate Government shall not be less than the floor wage.

Annexure

Annexure referred to in reply to part (a) to (c) of Lok Sabha Unstarred Question No.1716 for 10.03.2025 Area wise Rates of Minimum Wages for Scheduled Employments in the Central Sphere (as on 01.10.2024)

*Per 2.831 cubic meters or 100 cubic feet
** Per truck load of 5.662 cubic meters or 200 cubic feet

+ Employees engaged in the employment of Sweeping and Cleaning excluding Activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993.

# Employees engaged in the employment of Loading and Unloading in (i) Goods Sheds, Parcel Offices of Railways; (ii) Other Goods Sheds, Godowns, Warehouses and other similar employments; (iii) Docks and Ports; and (iv) Passengers Goods and Cargo Carried out at Airports (Both International and Domestic).

^ Employees engaged in the employment of construction or maintenance of Roads or Runways or in Building Operations including laying down Underground Electric, Wireless, Radio, Television, Telephone, Telegraph and Overseas Communication Cables and similar other Underground Cabling Work, Electric Lines, Water Supply Lines and Sewerage Pipe Lines.

$ Employees engaged in the employment of Gypsum Mines, Barytes Mines, Bauxite Mines, Manganese Mines, China Clay Mines, Kyanite Mines, Copper Mines, Clay Mines, Magnesite Mines, White Clay Mines, Stone Mines, Steatite Mines (including the mines producing Soap Stones and Talc), Ochre Mines, Asbestos Mines, Fire Clay Mines, Chromite Mines, Quartzite Mines, Quartz Mines, Silica Mines, Graphite Mines, Felspar Mines, Laterite Mines, Dolomite Mines, Red Oxide Mines, Wolfram Mines, Iron Ore Mines, Granite Mines, Rock Phosphate Mines, Hematite Mines, Marble and Calcite Mines, Uranium Mines, Mica Mines, Lignite Mines, Gravel Mines, Slate and Magnetite Mines.

Classification of Area

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