Minimum Wage in India: Rates, Trends & Compliance

What Is the Minimum Wage in India?

As of 2025, the minimum wage for employees in India is typically ₹178 per day, amounting to ₹5,340 per month. This serves as a baseline, and actual minimum wages are often higher, depending on regional economic conditions and specific job requirements.

For example, in Delhi, the minimum wage for unskilled workers is set at ₹18,456 per month as of August 2025, with higher wages for semi-skilled and skilled workers. Minimum wages are periodically reviewed and adjusted by state governments to account for inflation and the cost of living.

How Does Minimum Wage Apply to Different Workers in India?

Full-Time Employee Wages

Full-time employees in India are entitled to receive minimum wages as determined by the respective state governments. These rates are often categorized based on skill level—unskilled, semi-skilled, skilled, and highly skilled. In Delhi, as of April 1, 2025, the monthly minimum wage for unskilled workers is ₹18,456, for semi-skilled workers ₹20,371, for skilled workers ₹22,411, and for graduate/clerical-level workers ₹24,356. These rates can vary significantly between states and are subject to periodic revisions.

Part-Time Employee Wages

Part-time employees in India are generally entitled to wages proportional to their working hours, based on the applicable minimum wage rates for their category and region. The Minimum Wages Act, 1948, does not explicitly differentiate between full-time and part-time workers, implying that part-time workers should receive wages equivalent to the hourly rates of full-time workers in the same category. However, implementation can vary, and employers should consult state-specific labor laws.

Interns and Trainees

The entitlement of interns and trainees to minimum wages depends on their engagement type. Apprentices under the Apprentices Act, 1961, are entitled to a stipend lower than the standard minimum wage. Other interns performing work similar to regular employees may be entitled to the applicable minimum wage. Employers should review terms of engagement and legal guidelines to ensure compliance.

Expatriates

Expatriates working in India are generally subject to the same labor laws as domestic workers, including minimum wage regulations. However, expatriates often hold higher-skilled positions with salaries well above the minimum wage. Additionally, employment visas require a minimum annual salary of ₹2,050,000 (approximately $25,000), far exceeding standard minimum wages.

Factors Influencing Minimum Wage in India

Industry-Specific Variations

Minimum wage rates vary significantly across industries. Sectors like construction, manufacturing, and IT may have higher minimum wages due to demand for skilled labor. Conversely, sectors with abundant labor supply and lower skill requirements may offer lower wages. For example, in Delhi, the minimum wage for unskilled workers in the general category is ₹18,456 per month, while skilled workers receive ₹22,411 per month.

Economic Conditions

Economic factors such as inflation, cost of living, and employment rates influence minimum wage policies. To mitigate inflation's impact and ensure a decent standard of living, state governments periodically revise minimum wages. For example, Delhi adjusts its minimum wage rates to reflect changes in the cost of living, with the latest revision taking effect on April 1, 2025.

Government Policies and Legislation

Government initiatives play a crucial role in minimum wage regulation. The Code on Wages, 2019, consolidates various labor laws to standardize wage regulations nationwide. Additionally, India aims to transition to a living wage system by 2025, with technical assistance from the International Labour Organization (ILO) to ensure workers can afford essential needs.

Minimum Wage History and Trends in India

India's minimum wage laws have evolved significantly. The Minimum Wages Act of 1948 empowered state and central governments to set wage rates, leading to over 1,200 wage categories. In 2019, the Code on Wages was enacted to simplify regulations, setting the foundation for a uniform "floor wage" across the country.

While there has been policy discussion about moving toward a "living wage" framework by 2025, this remains an aspirational goal rather than a fully implemented legal mandate. Minimum wages continue to be adjusted regularly to account for inflation and cost of living, with Delhi and other metros leading with higher wage levels.

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