Minimum wages and the floor wage

Every employee, in every establishment, is entitled to the minimum rate of wages fixed by the appropriate government. That rate cannot be below the floor wage set by the Central Government.

Under the Code on Wages, minimum wages apply to every employee. The old scheduled-employment list is gone.

  • The Central Government fixes a floor wage. No State may fix a minimum wage below it (s. 9).
  • The appropriate government fixes minimum rates by skill (unskilled, semi-skilled, skilled, highly skilled) and by geographical area. It can fix them by time, by piece, or both (s. 6).
  • Rates are reviewed at least once every five years. Dearness allowance (variable DA) is usually revised twice a year: by the Centre from 1 April and 1 October, and by many States on their own dates.
  • Paying less than the minimum is an offence. The employee may claim the difference within three years.

Working it out

Check three things: the establishment's State, its zone or area, and each employee's skill category. Compare the rate with basic plus DA (the "wages"), not with gross. The HR desk flags any employee whose wages fall below the rate you enter for the category.

Last reviewed 17-10-2026. General information, not legal advice for a specific case. Check the latest Act, Rules and notifications of the appropriate government before acting.

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