Minimum Wage in India: Rates, Trends & Compliance

What Is the Minimum Wage in India?

As of 2025, India does not have a uniform national minimum wage. Instead, minimum wages are determined by individual state governments and can vary significantly based on factors such as skill level, industry, and regional economic conditions. For instance, in Delhi, the minimum monthly wage for unskilled workers was increased from ₹17,234 (approximately $210) to ₹17,494 (approximately $213) as of October 1, 2023. Similarly, semi-skilled workers saw an increase from ₹18,993 (approximately $231) to ₹19,279 (approximately $235), and skilled workers from ₹20,903 (approximately $254) to ₹21,215 (approximately $258). These rates are subject to periodic revisions to account for inflation and cost of living adjustments.

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 October 1, 2023, the monthly minimum wage for unskilled workers was ₹17,494, for semi-skilled workers ₹19,279, and for skilled workers ₹21,215. 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 ₹1,625,000 (approximately $19,800), 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 was ₹17,494 per month, while skilled workers received ₹21,215 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 October 1, 2023.

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. Looking forward, India plans to replace the minimum wage system with a living wage by 2025, ensuring workers can afford basic living expenses.

How To Stay Compliant When Hiring in India With Playroll

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. That’s the advantage of using a trusted Employer of Record like Playroll:

• ‍Scale your global team: Legally hire and swiftly onboard new hires in 180+ regions without the red tape by offloading the HR admin to Playroll, so you can freely explore new markets and focus on growth.
• ‍Pay your team accurately: Ensure your international employees and global contractors are paid on time, every time, and set up centralized global payroll processes.
• ‍Meet minimum wage requirements: Our built-in compliance checks and vetted contracts mean your agreements will always meet all legal requirements for statutory benefits, minimum wage, and more.