Minimum Wage India 2026: State-Wise Rates and Complete Guide
Minimum Wage Lookup
Minimum Wage Lookup
Minimum Wage India 2026: State-Wise Rates and Complete Guide
Minimum wages in India are set by both the Central Government and individual State Governments. India does not have a single national minimum wage. Instead, minimum wages vary by state, industry sector, skill level, and geographic zone. This makes compliance complex for businesses operating across multiple states. As of 2026, minimum wages range from approximately Rs 6,000/month in some rural zones of eastern states to over Rs 18,000/month in Delhi for skilled workers.
How Minimum Wages Work in India
Dual Authority: Under the Minimum Wages Act, 1948 (and the upcoming Code on Wages, 2019), both the Central Government and State Governments have the authority to set minimum wages for “scheduled employments” in their jurisdiction.
- Central Government sets minimum wages for establishments under its authority (railways, mines, oil fields, major ports, construction)
- State Governments set minimum wages for all other establishments (shops, factories, IT, hospitality, agriculture, etc.)
Scheduled vs Non-Scheduled Employment: Minimum wages are specified for “scheduled employments” listed in the schedule to the Act. Each state maintains its own list of scheduled employments. Common scheduled employments include shops and commercial establishments, factories, construction, agriculture, security services, and domestic work.
Skill-Based Classification: Most states classify workers into categories such as:
- Unskilled: Workers performing tasks requiring no specialised training
- Semi-Skilled: Workers with some training or experience in a specific trade
- Skilled: Workers with formal training, certification, or significant experience
- Highly Skilled: Workers with advanced expertise, supervisory capability
Zone-Based Variation: Several states divide their territory into zones (typically A, B, C, D) based on economic development, cost of living, and urbanisation. Zone A (usually state capital and major cities) has the highest minimum wage, while Zone D (rural areas) has the lowest.
Major State Minimum Wage Rates 2026
Delhi (National Capital Territory)
Delhi consistently has among the highest minimum wages in India, revised twice a year based on the Variable Dearness Allowance (VDA):
| Category | Monthly Minimum Wage (Approx.) |
|---|---|
| Unskilled | Rs 17,494 |
| Semi-Skilled | Rs 17,603 |
| Skilled | Rs 17,853 |
| Highly Skilled / Clerical | Rs 18,066 |
Delhi revises minimum wages every six months based on changes in the Consumer Price Index (CPI) through the VDA mechanism. The figures above are indicative and subject to the latest VDA notification.
Maharashtra
Maharashtra sets minimum wages for 72+ scheduled employments with zone-wise rates:
| Category | Zone I (Mumbai, Pune, etc.) | Zone II (Other Municipal Councils) | Zone III (Rural) |
|---|---|---|---|
| Unskilled | Rs 12,000-13,000 | Rs 11,000-12,000 | Rs 10,000-11,000 |
| Semi-Skilled | Rs 13,000-14,000 | Rs 12,000-13,000 | Rs 11,000-12,000 |
| Skilled | Rs 14,000-15,000 | Rs 13,000-14,000 | Rs 12,000-13,000 |
| Highly Skilled | Rs 15,000-16,000 | Rs 14,000-15,000 | Rs 13,000-14,000 |
Note: Maharashtra has separate rates for different scheduled employments. Shops and commercial establishments, engineering, textiles, and IT each have distinct rate tables.
Karnataka
| Category | Zone I (Bangalore Urban) | Zone II (Other Cities) | Zone III (Rural) |
|---|---|---|---|
| Unskilled | Rs 10,000-11,500 | Rs 9,000-10,500 | Rs 8,000-9,500 |
| Semi-Skilled | Rs 11,000-12,500 | Rs 10,000-11,500 | Rs 9,000-10,500 |
| Skilled | Rs 12,000-13,500 | Rs 11,000-12,500 | Rs 10,000-11,500 |
| Highly Skilled | Rs 13,000-14,500 | Rs 12,000-13,500 | Rs 11,000-12,500 |
Tamil Nadu
Tamil Nadu revises minimum wages for each scheduled employment separately. Key rates:
| Sector | Monthly Minimum (Approx.) |
|---|---|
| IT / Software (Unskilled) | Rs 9,000-11,000 |
| Shops & Establishments | Rs 8,500-12,000 |
| Automobile Engineering | Rs 10,000-14,000 |
| Textiles | Rs 8,000-11,000 |
Telangana
| Category | Zone I (Hyderabad) | Zone II (Other) | Zone III (Rural) |
|---|---|---|---|
| Unskilled | Rs 10,500-11,500 | Rs 9,500-10,500 | Rs 8,500-9,500 |
| Skilled | Rs 12,000-13,500 | Rs 11,000-12,500 | Rs 10,000-11,500 |
Other Key States
| State | Unskilled (Approx. Monthly) | Skilled (Approx. Monthly) |
|---|---|---|
| Andhra Pradesh | Rs 9,000-10,500 | Rs 11,000-13,000 |
| West Bengal | Rs 8,500-10,000 | Rs 10,500-12,500 |
| Gujarat | Rs 9,000-10,500 | Rs 11,000-13,000 |
| Madhya Pradesh | Rs 8,000-9,500 | Rs 10,000-12,000 |
| Rajasthan | Rs 7,500-9,000 | Rs 9,500-11,500 |
| Uttar Pradesh | Rs 8,000-9,500 | Rs 10,000-12,000 |
| Kerala | Rs 10,000-12,000 | Rs 12,000-15,000 |
| Haryana | Rs 9,500-11,000 | Rs 11,500-13,500 |
| Punjab | Rs 9,000-10,500 | Rs 11,000-13,000 |
Note: All figures are approximate and subject to the latest government notifications. Minimum wages are revised periodically (every 6 months to 2 years depending on the state).
Variable Dearness Allowance (VDA) Mechanism
Many states (and the Central Government) use the VDA mechanism to adjust minimum wages without issuing entirely new rate notifications. VDA is linked to the Consumer Price Index (CPI) and is revised every 6 months (January and July in most states).
How VDA Works:
1. The base minimum wage is set through a formal gazette notification
2. VDA is calculated based on the change in CPI since the base rate was set
3. VDA is added to the base rate, and the sum becomes the effective minimum wage
4. VDA is recalculated every 6 months, ensuring minimum wages keep pace with inflation
This means minimum wages effectively increase twice a year in states using the VDA mechanism, even without a formal rate revision.
Central Government Minimum Wage Floor
The Central Government has proposed a national minimum wage floor of Rs 178/day under the Code on Wages, 2019. This floor would serve as the absolute minimum below which no state can set its minimum wage. As of 2026, the Code on Wages rules have been notified in some states, and implementation is progressing.
The proposed national floor wage is divided into regions:
- Metropolitan and large cities: Higher floor
- Non-metropolitan urban areas: Moderate floor
- Rural and semi-urban areas: Base floor
Compliance Obligations for Employers
Payment Above Minimum Wage: Employers must ensure that the total remuneration (including VDA, if applicable) paid to any employee equals or exceeds the applicable minimum wage for their category, zone, and scheduled employment.
Record Keeping: Employers must maintain registers of wages paid, attendance, overtime, and deductions. These records must be available for inspection by labour inspectors.
Display of Minimum Wage Rates: Applicable minimum wage rates must be displayed prominently at the workplace in the language understood by the majority of employees.
Penalty for Non-Compliance: Under the Minimum Wages Act, paying below minimum wage attracts a penalty of up to Rs 500 per employee and imprisonment up to 6 months. Under the Code on Wages, penalties are significantly enhanced.
Overtime Rates: Overtime work must be compensated at twice the normal wage rate. The normal working day is 8-9 hours depending on the state, and normal working week is 48 hours.
Frequently Asked Questions
Q1: Does minimum wage apply to contract employees?
Yes. Contract employees must be paid at least the minimum wage applicable to the scheduled employment in which they work. The principal employer (where the work is performed) is ultimately responsible for ensuring minimum wage compliance, even though the staffing agency is the direct employer.
Q2: Do IT companies need to follow minimum wage rules?
Yes. In most states, IT and IT-enabled services are covered under the Shops and Commercial Establishments scheduled employment. The applicable minimum wage for this category must be met.
Q3: Is there a separate minimum wage for domestic workers?
Several states (including Kerala, Karnataka, Tamil Nadu, and Rajasthan) have notified minimum wages specifically for domestic workers. The rates are typically Rs 5,000-10,000/month depending on the state and nature of work.
Q4: How often do minimum wages change?
It depends on the state. Some states revise wages every 6 months through VDA adjustments (Delhi, Central). Others revise every 1-2 years through fresh notifications. Some states have not revised rates in 3-5 years, leading to erosion in real terms.
Q5: What if an employee’s role spans multiple skill categories?
The employee should be classified based on the highest skill level required for their primary duties. If in doubt, classify at the higher level to ensure compliance.
Stay Compliant with TMS
Minimum wage compliance across multiple states and scheduled employments is one of the most complex aspects of Indian labour law. TMS monitors minimum wage notifications across all Indian states and ensures that all contract employee wages meet or exceed applicable minimums.
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*This content is prepared for tmservices.co.in (TMS – Total Management Services). All pricing figures, statutory rates, and market data are indicative and based on publicly available information as of early 2026. Verify current rates from official government sources before making compliance decisions.*
