Ensuring fair compensation for workers is a fundamental aspect of labour laws. In India, minimum wage regulations vary across states and industries, making compliance essential for employers. The Minimum Wages Act, 1948, and the upcoming Code on Wages, 2019, govern wage policies across different job sectors.
This article provides a state-wise and sector-wise breakdown of minimum wages in India (2024), helping HR professionals, employers, and employees understand the latest wage rates and compliance requirements.
1. Understanding India’s Minimum Wage System
The Minimum Wages Act, 1948, mandates fair wages based on sector, skill level, and location. The key factors determining minimum wages in India include:
📌 Central vs. State Wage Authority: Both Central and State governments set minimum wages, with states having the final say.
📌 Scheduled Employment: The law applies to industries listed under “scheduled employment,” including manufacturing, construction, IT, healthcare, retail, and more.
📌 Skill-Based Categorization: Workers are classified as unskilled, semi-skilled, skilled, or highly skilled, with wages increasing accordingly.
📌 Urban vs. Rural Wages: Wage rates differ for urban, semi-urban, and rural areas to reflect cost-of-living variations.
📌 Revisions & Inflation Indexing: Minimum wages are revised every 5 years or sooner, considering inflation and economic conditions.
📌 Compliance Mandates: Employers must ensure timely wage payments, overtime pay, and social security contributions (PF & ESI).
2. State-Wise Minimum Wages in India (2024)
📌 Note: Wages are approximate and subject to periodic government revisions. Always refer to official notifications from respective State Labour Departments.
| State/UT | Unskilled Workers | Semi-Skilled Workers | Skilled Workers |
|---|---|---|---|
| Delhi | ₹18,499 | ₹20,019 | ₹22,146 |
| Maharashtra (Mumbai Region) | ₹15,500 | ₹17,200 | ₹18,900 |
| Karnataka (Bangalore) | ₹14,500 | ₹16,500 | ₹18,500 |
| Tamil Nadu (Chennai) | ₹13,000 | ₹15,000 | ₹17,000 |
| West Bengal (Kolkata) | ₹11,250 | ₹12,750 | ₹14,250 |
| Uttar Pradesh (Noida/Lucknow) | ₹10,500 | ₹12,000 | ₹14,000 |
| Gujarat (Ahmedabad) | ₹11,500 | ₹13,000 | ₹15,000 |
| Rajasthan (Jaipur) | ₹10,000 | ₹11,500 | ₹13,000 |
| Punjab (Ludhiana) | ₹11,800 | ₹13,500 | ₹15,200 |
| Haryana (Gurgaon/Faridabad) | ₹12,500 | ₹14,200 | ₹16,500 |
| Madhya Pradesh (Bhopal/Indore) | ₹9,500 | ₹11,000 | ₹13,000 |
| Telangana (Hyderabad) | ₹13,500 | ₹15,500 | ₹17,500 |
| Odisha (Bhubaneswar) | ₹9,800 | ₹11,300 | ₹12,800 |
| Bihar (Patna) | ₹9,000 | ₹10,500 | ₹12,000 |
🔹 Key Observation: Wages are generally higher in metropolitan cities like Delhi, Mumbai, and Bangalore compared to smaller towns due to cost-of-living differences.
3. Sector-Wise Minimum Wages in India (2024)
The table below highlights sector-specific wages in Delhi as a benchmark (since states may have different wage structures).
| Sector/Industry | Unskilled Workers | Semi-Skilled Workers | Skilled Workers |
|---|---|---|---|
| Construction & Real Estate | ₹18,499 | ₹20,019 | ₹22,146 |
| Retail & E-Commerce | ₹16,500 | ₹18,000 | ₹20,500 |
| IT & Software (Entry-Level) | ₹20,000 | ₹25,000 | ₹35,000 |
| Manufacturing & Factories | ₹18,000 | ₹20,000 | ₹22,500 |
| Hospitality (Hotels & Restaurants) | ₹15,500 | ₹18,500 | ₹22,000 |
| Healthcare (Nurses, Lab Assistants, Support Staff) | ₹16,000 | ₹19,000 | ₹22,500 |
| Education (Teachers, Admin Staff) | ₹17,000 | ₹20,000 | ₹25,000 |
| Security Services (Guards, Supervisors) | ₹14,500 | ₹16,500 | ₹18,500 |
| Domestic Workers (Household Help, Cooks, Cleaners) | ₹10,000 | ₹12,000 | ₹15,000 |
🔹 Sector-Based Wage Insights:
✔ IT & healthcare workers have higher base salaries due to specialized skill requirements.
✔ Construction & manufacturing workers are entitled to daily wages and overtime.
✔ E-commerce delivery workers must receive wages aligned with state regulations.
4. Compliance Requirements for Employers
Employers must ensure:
✅ Minimum Wage Payment: Pay workers at or above state-prescribed wage rates.
✅ Timely Wage Disbursal: Salaries must be paid by the 7th of every month.
✅ Overtime Pay: Double wages must be given for extra work beyond 8 hours/day.
✅ Provident Fund (PF) & Employee State Insurance (ESI): Mandatory for organizations with 10+ employees.
✅ Record Keeping: Maintain wage registers & salary slips for audits.
🚨 Penalties for Non-Compliance:
| Offense | Penalty |
|---|---|
| Non-payment of minimum wages | Fine up to ₹50,000 & 3 months imprisonment |
| Delay in wage payment | Fine up to ₹10,000 |
| Non-maintenance of wage records | Fine up to ₹5,000 |
✔ Regular audits help businesses avoid legal risks & financial penalties.
5. Key Takeaways for Employers & HR Professionals
✔ Minimum wages vary across states & industries – Stay updated on government notifications.
✔ Compliance is mandatory – Employers must ensure fair compensation & timely payments.
✔ Technology can simplify payroll management – Using HR & payroll software ensures wage compliance.
✔ Gig workers & contract employees must also be paid minimum wages if under formal agreements.
Conclusion
Understanding state-wise and sector-wise minimum wage laws is crucial for both employers and employees. Compliance ensures legal security, prevents disputes, and promotes fair labour practices.
Employers must:
🔹 Regularly update payroll systems to reflect wage revisions.
🔹 Maintain transparent salary structures as per industry standards.
🔹 Adhere to state & central wage laws to avoid legal penalties.
With the upcoming implementation of new labour codes, staying compliant with minimum wage laws is more important than ever.