Minimum wages · guide · updated 6 Oct 2026, checked by the LekhaHR team
Since 21 Nov 2025 the Code on Wages bars paying anyone less than the minimum rate their state notifies for their skill level and area. Rates move with each dearness revision, so this page prints no state table. It shows how to find the current rate, read it, and test pay against it on Code wages rather than gross.
Key facts
because a rate copied into a spreadsheet last year is already out of date.
because HRA is 40% of pay, under 50%, so nothing is added back; special allowance is not an excluded item and counts, under the Ministry's FAQs of 16 Mar 2026
because HRA and conveyance are 70% of pay, so the ₹4,000 above 50% is added back to the ₹6,000 basic
Code on Wages, 2019, s.2(y) and its first proviso · in force 21 Nov 2025 · reviewed 6 Oct 2026
No. 01
Which rate
Your state's rate, on the line for each person's skill level and work location. Four questions pin down the line: who notifies the rate, which skill band the job falls in, which area or zone the workplace sits in, and whether the work is arduous.
because a private office, shop, clinic or factory follows the rates its state notifies. The Central Government's rates cover central-sphere work such as mines, railways, major ports and central public sector undertakings, with their contractors.
because the Code names four levels: unskilled, semi-skilled, skilled and highly skilled. The central orders put clerical work in the skilled band; your state's notification defines its own bands, so match the duties to its wording.
because rates may differ by geographical area. The central orders use areas A, B and C, with metro cities in A; states draw their own zones. A Pune employee of a Bengaluru company is paid against Maharashtra's rate for Pune.
because s.6 lets a government add for heat, humidity or hazardous processes. Office roles rarely fall here; warehouse, kitchen or site roles may.
Code on Wages, 2019, s.6 and s.7 · in force 21 Nov 2025 · reviewed 6 Oct 2026
No. 02
How rates are set
A basic rate, reviewed within 5 years, plus a dearness part that follows prices and is revised more often. Some notifications print one all-inclusive figure instead. Under s.9 no state rate may sit below the Central Government's floor wage.
because s.8 asks each government to review or revise basic rates ordinarily at intervals not exceeding 5 years.
because s.7 lets a rate be a basic rate plus a cost-of-living allowance adjusted at intervals the government directs. The cycle differs by state, so check yours. The central orders revise it on the Consumer Price Index for Industrial Workers; the latest central revision we read is payable from 1 Apr 2026.
because s.7 also allows a single rate that already folds in the allowance. Some notifications print basic and VDA separately; others print one total.
because under s.8(4) a new notification comes into force 3 months from its date of issue unless it states otherwise. Dearness revisions normally state their own date.
because s.9 lets the Central Government fix a floor wage on minimum living standards, possibly by area, and a state's rate cannot be lower. When we checked on 6 Oct 2026 we found no floor-wage amount notified under s.9, so we print none.
because it is fixed by the minimum wage notification and reviewed every few years
because it is revised on the consumer price index, here by the central order payable from 1 Apr 2026
Ministry of Labour & Employment, order File No. 1/6(1)/2025-LS-II dated 30 Mar 2026 (agriculture) · reviewed 6 Oct 2026
Code on Wages, 2019, s.9 · Dearness part of minimum wages: commonly revised every six months, on cycles that differ by state: Central-sphere and state VDA orders (practice, not a Code requirement) · reviewed 6 Oct 2026
No. 03
Check the rate
From the state's own labour department, twice: the minimum wages notification for the basic rate, and the latest dearness order for the allowance. Use your state's current notification, which may still be one issued under the old Act and continued by the Code's savings clause, s.69(2).
because the order names its own date, which wins over the order's issue date
because both were paid at the old rate before the order was seen
because the difference for the two months goes on its own line, named for the months it covers, so the register shows what was owed and when it was paid
No. 04
Comparing pay
On "wages" as the Code defines them: basic pay, dearness allowance and retaining allowance, plus any excluded items above 50% of all remuneration. HRA and conveyance are excluded items, so a large gross can still sit below the minimum on the wages that count. The two salaries at the top of this page show the test; the rows below show what changed for HRA.
because the old definition of wages included house rent allowance, so a structure with a large HRA could meet the minimum rate on gross alone.
because HRA is now an excluded item, counted only through the add-back above 50% of all remuneration.
because ₹6,000 basic plus the ₹4,000 add-back is what is held against the rate. A structure that passed through its HRA before 21 Nov 2025 can fall short now; check this with your lawyer before relying on it.
In a PF-covered company the employer's PF contribution also counts in all remuneration for the 50% test, and is itself an excluded item. LekhaHR's payroll works out Code wages for every salary each month, the same figure PF and ESI are computed on, so the split is visible before the run is approved. The labour codes checklist lists the other wage duties by headcount.
Code on Wages, 2019, s.2(y) and its first proviso · in force 21 Nov 2025 · reviewed 6 Oct 2026
No. 05
Questions
There is no single national figure an employer pays. Each state notifies its own minimum rates by skill level and area, and since 21 Nov 2025 they apply to every employee under the Code on Wages. Your state's current notification may still be one issued under the old Act: those rates generally continue under the Code's savings clause, s.69(2), until revised. The Central Government sets rates for central-sphere work and can fix a floor wage that state rates cannot go below.
Yes. Under the old Act, coverage depended on the state's schedule. Most large states listed shops and commercial establishments, so offices there were already covered. Since 21 Nov 2025, s.5 of the Code on Wages removes the schedule test, so roles a state never listed are now covered too. Whether a role no current notification names has a rate yet is a question for your lawyer.
It depends on the state. In practice the central sphere and Delhi revise the dearness part from 1 April and 1 October, Maharashtra commonly from 1 January and 1 July, and Karnataka commonly notifies once a year from 1 April; check the dates on your state's labour department site. Basic rates are reviewed at least every 5 years. Orders often arrive weeks after their effective date, so pay the difference as arrears in the next payroll, on its own payslip line.
On "wages" as the Code defines them: basic pay, dearness allowance and retaining allowance, plus any excluded items (such as HRA and conveyance) above 50% of all remuneration. A ₹20,000 salary with ₹12,000 of basic and special allowance is tested at ₹12,000, not ₹20,000.
On the state labour commissioner's site: the minimum wages notification for "shops and commercial establishments" (the schedule most offices fall under), plus the latest dearness order. If the rate is daily and you pay monthly, the common practice most inspectors accept is the daily rate × 26. Print both PDFs with the month's payroll register.
It is the common practice of turning a notified daily rate into a monthly figure by multiplying it by 26, on the reading that a month has about four weekly rest days. It is not written into the Code. Where your state's notification prints a monthly rate, that figure wins; where it prints only a daily rate, most inspectors accept the daily rate × 26 as the monthly comparison. Hold it against Code wages, not gross.
The shortfall becomes a claim for the difference, and the Code lets the authority add compensation on top. Under the Code, inspectors act as inspector-cum-facilitators. Ask your lawyer about your exposure before settling a claim.
A minimum the Central Government can fix under s.9 of the Code on Wages, based on minimum living standards and possibly varying by area. State minimum rates cannot be set below it, and a state rate already higher cannot be reduced. When we checked on 6 Oct 2026 we found no floor-wage amount notified under s.9.
No. 06
Sources
The rules on this page are from the Code on Wages itself; the rupee example is from the Chief Labour Commissioner's order. For your state's rate, the state's own notification is the source.
Checked by the LekhaHR team · reviewed 6 Oct 2026 · next review by 31 Jan 2027. This guide explains the rule; it is not legal advice for your establishment.
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