How minimum wages are set
- Under the Code on Wages they apply to every employee in every employment, not only to scheduled employments as before.
- Rates are fixed by skill — unskilled, semi-skilled, skilled and highly skilled — and often by geographical zone and by industry.
- Most rates have a basic part and a variable dearness allowance (VDA) revised with the consumer price index, usually from 1 April and 1 October. That is why the figures move twice a year.
- The Central Government fixes rates for central-sphere employments (railways, mines, banks, central PSUs and the like) through the Chief Labour Commissioner; states fix everything else.
- The Centre’s national floor wage is the minimum below which no state may fix a rate.
Checking a salary against the minimum
Compare the minimum wage with what the Code counts as wages — basic plus DA (and retaining allowance) — not with gross pay including HRA and other allowances. A salary whose gross clears the minimum can still fall short on basic plus DA.
Pay at least the rate for the employee’s actual skill category and the zone of their workplace, and re-check every April and October.
When you run payroll, WebHR lists employees whose basic plus DA is below the unskilled monthly minimum it has on file for their work state. Those figures are approximate and only for the unskilled category; the state’s current notification is the one to follow.
Where the current rates are published
| Authority | Where |
|---|---|
| Central sphere | Chief Labour Commissioner (Central) — minimum wages and VDA |
| Karnataka | Karnataka Labour Department |
| Maharashtra | Maharashtra Labour Department |
| Delhi | Delhi Labour Department |
| Tamil Nadu | Tamil Nadu Labour Department |
| Other states | The state labour department’s notifications page |
Due dates
| What | When | How often |
|---|---|---|
| Minimum wage VDA revision — re-check salaries | From 1 April and 1 October (most states) | Half-yearly |
If a due date falls on a holiday, the authority’s own rule for the next working day applies. Full compliance calendar
References
Related
Plain-language guidance for HR teams, not legal advice. Checked against the sources above on 29 September 2026; the notification or your authority’s portal is final. Spotted something out of date? Tell us.