The new wage code prohibits employers from paying workers less than the stipulated minimum wage. Further, minimum wages must be revised and reviewed by the central and state government at an interval of not more than five years.

India uses a complex method of setting minimum wages that defines nearly 2,000 different types of jobs for unskilled workers and over 400 categories of employment, with a minimum daily wage for each type of job. The monthly minimum wage calculation includes the variable dearness allowance (VDA) component, which accounts for inflationary trends, that is, the increase or decrease in the Consumer Price Index (CPI), and where applicable, the house rent allowance (HRA).


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On October 23, the Delhi government announced its revised minimum wage rates, effective October 1, 2023. The minimum monthly wages of unskilled workers will be increased from INR 17,234 (US$207.04) to INR 17,494 (US$210.17), semi-skilled workers from INR 18,993 (US$228.20) to INR 19,279 (US$231.64) and skilled workers from INR 20,903 (US$251.12) to INR 21,215 (US$254.87).

The minimum wage rates for supervisor and clerical categories of employees have also been revised by the city government. The minimum monthly wages of employees who have not completed their Grade 10 schooling (non-matriculate) is increased from INR 18,993 (US$228.20) to INR 19,279 (US$231.64) and for matriculate employees from INR 20,903 (US$251.12) to INR 21,215 (US$254.87).

If workers are paid less than the government declared minimum wages, then they can file a complaint with the labor inspectorate. The complaint can be filed individually by the worker, or through a lawyer, or through an official of the registered trade union.

Under the Code on Wages Act, 2019, workers from all industries are entitled to receive minimum wages fixed by their respective state governments. Matters concerning labor and its welfare come under the purview of, both, the state and central governments as per constitutional law, thereby resulting in multi-jurisdictional regulation.

Foreign entities doing business in India can learn more about the minimum wages in India through the Ministry of Labor and Employment database, which provides industry-wise wage norms. The new wage code can be accessed here, and the website for the chief labor commissioner can be accessed here. ff782bc1db

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