Minimum Wages Act
The Minimum Wages Act, 1948, is a central legislation that empowers state and central governments to fix minimum wage rates for workers employed in 'scheduled employments' — specific categories of jobs/industries notified under the Act. It aims to prevent the exploitation of low-wage workers by ensuring a legally enforceable wage floor.
Minimum wages vary significantly by state, sector, and skill category (unskilled, semi-skilled, skilled, highly skilled) and are revised periodically, often linked to the Consumer Price Index. The Act has now been subsumed into the Code on Wages, 2019, which extends minimum wage protection to all employments (not just scheduled ones) once fully implemented, though many provisions still operate under the earlier framework in practice.
Key points
- ✓ Empowers state/central governments to fix minimum wages for scheduled employments
- ✓ Rates vary by state, sector, and employee skill category
- ✓ Revised periodically, often linked to Consumer Price Index movements
- ✓ Subsumed into the Code on Wages, 2019, which extends coverage to all employments
- ✓ Employers paying below the notified minimum wage are liable for penalties
Example
A semi-skilled worker in Delhi is entitled to the state-notified minimum wage rate for that category, which is higher than the rate for an unskilled worker in the same state; an employer paying below this notified rate would be in violation of the Act regardless of any private agreement with the worker.
Frequently asked questions
Does minimum wage vary by state?
Is the Minimum Wages Act still in force?
What happens if an employer pays below minimum wage?
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