Minimum Wage in India: Rates, Trends & Compliance

What Is the Minimum Wage in India?

India doesn’t have one single national minimum wage. Instead, minimum wages are set by individual state governments, so the amount you’re entitled to depends on where you work, your skill level, and the type of job you do.

The Central Government does publish a national floor wage of ₹178 per day, but this isn’t a legally binding minimum. It’s mainly used as a reference point, and in reality, state-level minimum wages are much higher and are usually set on a monthly basis.

For example, in Delhi, the minimum monthly wage for unskilled workers is ₹18,456 (effective April 1, 2025), with higher rates for semi-skilled, skilled, and graduate or clerical roles. States review and update these wages periodically to reflect inflation and changes in the cost of living.

How Does Minimum Wage Apply to Different Workers in India?

India’s minimum wage system works a little differently from many other countries. There’s no single national rate that applies to everyone. Instead, minimum wages are set by state governments and vary based on factors like skill level, type of work, and location. These rules apply across different categories of workers, from full-time employees to interns and expatriates.

Full-Time Employee Wages

Full-time employees in India are entitled to minimum wages set by the state in which they work – with wages typically categorized by skill level – unskilled, semi-skilled, skilled, and graduate or clerical roles.

For example, in Delhi, the following monthly minimum wages, effective April 1, 2025, continue to apply in 2026 unless revised by the state –

• Unskilled workers – ₹18,456
• Semi-skilled workers – ₹20,371
• Skilled workers – ₹22,411
• Graduate / clerical-level workers – ₹24,356

Rates vary significantly across states and are periodically reviewed to account for inflation and changes in the cost of living.

Part-Time Employee Wages

India’s labour laws don't explicitly distinguish between full-time and part-time employees when it comes to minimum wages – in practice, this means part-time workers are generally entitled to proportionate pay based on the applicable minimum wage for their role, skill level, and location.

For example, a part-time worker performing the same duties as a full-time unskilled employee should receive an equivalent hourly or daily rate, calculated from the state’s minimum wage – although enforcement and calculation methods can vary by state.

Interns and Trainees

Whether interns and trainees are entitled to minimum wages depends on the nature of their engagement –

• Apprentices covered under the Apprentices Act, 1961 are entitled to a stipend, which may be lower than the statutory minimum wage
• Interns or trainees performing work similar to regular employees, outside a formal apprenticeship, may be entitled to the applicable minimum wage

Employers should clearly define internship arrangements and review state-specific guidance to ensure compliance.

Expatriates

Expatriates working in India are generally subject to the same labour laws as domestic workers – including minimum wage regulations – although most hold senior or highly skilled roles with salaries well above statutory thresholds.

In addition, Indian employment visas require a minimum annual salary of USD 25,000 – approximately ₹2.1 million per year, depending on exchange rates – which is far above any state-level minimum wage.

Factors Influencing Minimum Wage in India

Minimum wages in India aren’t set in isolation – they’re shaped by a mix of local economic realities, industry needs, and government policy. Because each state sets its own rates, wages can look very different depending on where the work is done and what kind of role it is.

Industry-Specific Variations

Minimum wage levels often differ by industry – especially where certain roles require more training, experience, or physical effort. Sectors like construction, manufacturing, and technical trades typically have higher minimum wages because they rely on skilled labour. By contrast, roles with lower skill requirements or a larger available workforce may fall at the lower end of the wage scale.

For example, in Delhi, the monthly minimum wage rates effective April 1, 2025 – and still in force for 2026 unless updated – set ₹18,456 for unskilled workers in the general category, while skilled workers are entitled to ₹22,411 per month. Some industries may apply higher rates depending on the nature of the work involved.

Economic Conditions

Economic conditions play a big role in how minimum wages are set and updated – factors like inflation, rising living costs, and overall employment levels all come into play. To help wages keep pace with the cost of living, states review and adjust minimum wages on a regular basis.

In Delhi, for instance, minimum wages are periodically revised to reflect changes in living costs, with the most recent base update taking effect on April 1, 2025 and continuing to apply in 2026 unless a new revision is announced during the year.

Government Policies and Legislation

Government policy provides the framework that guides how minimum wages work across the country. The Code on Wages, 2019 brought together several labour laws under a single system and confirmed that minimum wages would continue to be set by states, while introducing a national floor wage as a reference point.

India has also signalled a longer-term goal of moving toward a living wage, with support from the International Labour Organization (ILO). As of 2026, this remains a policy objective rather than a legal requirement – meaning state-notified minimum wages are still the rates that employers must follow.

Minimum Wage History and Trends in India

India’s minimum wage framework has developed steadily over time – shaped by changing labour markets, economic growth, and policy reform. The Minimum Wages Act of 1948 originally gave both central and state governments the power to set minimum wage rates, which over the decades resulted in a complex system with more than 1,200 different wage categories across occupations, industries, and regions.

A major shift came with the introduction of the Code on Wages, 2019, which consolidated several labour laws into a single statute and aimed to simplify how wages are regulated. While the Code introduced the concept of a national floor wage – a baseline reference intended to prevent extremely low wages – it didn't replace state-level minimum wages. As of 2026, states continue to set and enforce their own minimum wage schedules within this framework.

There has also been growing policy discussion around moving toward a living wage system – one that better reflects the actual cost of meeting basic needs. Although earlier targets referenced 2025, this transition remains aspirational rather than legally mandated in 2026, with minimum wages still serving as the enforceable standard.

In practice, minimum wages across India continue to be reviewed and adjusted regularly, often through inflation-linked mechanisms such as Variable Dearness Allowance (VDA). Large metropolitan areas like Delhi and other major cities typically lead with higher minimum wage levels, reflecting higher living costs and more competitive labour markets.