Minimum Wages Act

Minimum wages rates in India are fixed under the Minimum wages Act, 1948 and is determined both by the Central Government and the Provincial governments. Minimum wages rates may be established for any region, occupation, and sector and declared at the national, state, sectoral and occupational levels. The minimum wages is determined by considering cost of living.

While fixing the minimum wages rate, it may be set for different work classes in the same scheduled employment or set for different scheduled employment. It may also be fixed by hour, day, month or any other wage period.

Under the Minimum Wages Act, both the Central and State Governments may notify the scheduled employments and fix/revise minimum wage rates for these scheduled employments.