Minimum Wages Act 1948, and what protects your pay now
The Minimum Wages Act 1948 set India's pay floor for 77 years; the Code on Wages replaced it on 21 November 2025. What each says, and the labour welfare fund.
Is the Minimum Wages Act 1948 still the law?
No. The Code on Wages 2019 repealed the Minimum Wages Act 1948 from 21 November 2025. But s.69(2) of the Code keeps rates fixed under the old Act until replaced, so the minimum you are owed today was likely set under the 1948 Act — and is enforced under the Code, which covers every employee.
Key takeaways
- →The Minimum Wages Act 1948 was repealed on 21 November 2025; its rates continue until replaced.
- →The old Act covered only scheduled employments. The Code on Wages covers every employee.
- →Underpaid? You now have three years to claim, not six months.
- →No national floor wage has been notified yet, despite s.9 of the Code requiring one.
- →The labour welfare fund is a separate deduction of a few rupees a year.
What the Minimum Wages Act 1948 covered, and who it protected
The Act came into force on 15 March 1948 to fix minimum rates of wages “in certain employments”. Section 12 required every employer to pay at least the notified rate, and no contract or collective agreement could undercut it.
It protected only employees in scheduled employments — those listed in its Schedule, with a rate actually fixed. Part I covered industrial work such as mills, bidi making, plantations, road and building construction, stone breaking, public motor transport and tanneries; Part II covered agriculture. Governments could add employments (s.27), but anyone outside the list had no statutory minimum.
The Central Government fixed rates for its own establishments, railways, mines, oilfields and major ports, and the States for everything else (s.2(b)) — which is why India has a patchwork of rates rather than one national figure.
How minimum wages are fixed and revised
Rates are fixed by the committee method, where a committee enquires and advises, or the notification method, where proposals are gazetted with at least two months for objections (s.5 of the 1948 Act; s.8 of the Code). Committees have equal employer and employee members, with independents up to a third.
A rate usually combines a basic rate with a variable dearness allowance (VDA) tied to a price index (s.4; Code s.7). The basic rate is reviewed at least every five years; the VDA far more often. The Code fixes rates primarily by skill — unskilled to highly skilled — and geographical area (s.6(6)).
Minimum wage revision cycle by State
| Sphere | Revision cycle | Latest notification found |
|---|---|---|
| Central sphere | VDA revised from 1 April and 1 October each year; basic rates last fixed in January 2017 | Order of 30 March 2026, from 1 April 2026 |
| Maharashtra | Special allowance revised half-yearly, for January–June and July–December | Latest found: 20 February 2025, for January–June 2025 |
| Telangana | VDA notified every six months, from 1 April and 1 October; basic rates every five years | Not confirmed |
| West Bengal | Adjusted from 1 January and 1 July on the half-yearly average consumer price index | Latest found: 24 January 2022 |
| Tamil Nadu | Dearness allowance recalculated each 1 April; basic rates revised employment by employment | Latest employment-wise order: G.O.(2D) No.44, 7 November 2025 |
| Karnataka | Not confirmed — the Labour Department site could not be reached | Not confirmed |
Central-sphere minimum wage rates now
Daily rates from 1 April 2026, set by the Chief Labour Commissioner under s.69(2) of the Code. Areas A, B and C are city classes; States set their own rates.
| Employment | Category | Area | Basic + VDA | Per day |
|---|---|---|---|---|
| Construction and building operations | Unskilled | A | ₹523 + ₹304 | ₹827 |
| Construction and building operations | Highly skilled | A | ₹693 + ₹401 | ₹1,094 |
| Sweeping and cleaning | — | A | ₹523 + ₹304 | ₹827 |
| Sweeping and cleaning | — | B | ₹437 + ₹256 | ₹693 |
| Sweeping and cleaning | — | C | ₹350 + ₹206 | ₹556 |
| Agriculture | Unskilled | A | ₹333 + ₹195 | ₹528 |
| Agriculture | Unskilled | C | ₹300 + ₹178 | ₹478 |
The VDA is revised again from 1 October each year; the October 2026 order could not be read on an official copy, so check clc.gov.in for the current figure.
Minimum wage, fair wage and living wage
The Committee on Fair Wages (1948) defined a minimum wageas providing “not merely for the bare sustenance of life” but for efficiency; a living wage as adding frugal comforts such as education and health; and a fair wage between them, tied to productivity.
Only the first became law. The 2017 Central rates rest on 1957 Indian Labour Conference norms, plus 25% for education, health and old age added by the Supreme Court in 1992.
What counts as wages
The 1948 Act counted house rent allowance as wages (s.2(h)); the Code is narrower, but if excluded allowances exceed half your pay, the excess counts back in.
| Item | 1948 Act, s.2(h) | Code on Wages, s.2(y) |
|---|---|---|
| Basic pay and dearness allowance | Counted | Counted |
| House rent allowance | Counted | Excluded, subject to the 50% rule |
| Employer PF / pension contribution | Excluded | Excluded, subject to the 50% rule |
| Travelling allowance | Excluded | Excluded, subject to the 50% rule |
| Gratuity | Excluded | Excluded |
| Bonus, incentives, variable pay | Depends on the contract | Not wages |
| Excluded allowances above 50% of pay | No such rule | Excess added back to wages |
What to do if you are paid below the minimum wage
Work out the shortfall month by month against the notified rate for your work, skill and area, and keep payslips, attendance records and bank statements.
Then claim. Under s.45 of the Code you, a registered trade union or an Inspector-cum-Facilitator can apply to the claims authority within three years; the authority can order the unpaid wages plus compensation of up to ten times, and aims to decide within three months. The 1948 Act allowed only six months (s.20). An employer that pays less than the minimum can be fined up to ₹50,000, and on a repeat within five years imprisoned for up to three months (s.54). How to file with the labour authorities.
The 1948 Act and the Code on Wages compared
The Code kept the 1948 machinery and widened who it protects. Its s.9 floor wage had not been notified as of August 2026.
| Minimum Wages Act 1948 | Code on Wages 2019 | |
|---|---|---|
| Status | Repealed 21 November 2025 | In force from 21 November 2025 |
| Who is covered | Scheduled employments only | Every employee |
| How rates are set | Employment by employment | By skill level and geographical area |
| National floor | Non-statutory, last ₹176 a day (2017) | Statutory floor wage — not yet notified |
| Time to claim | Six months | Three years |
| Compensation | Up to ten times the shortfall | Up to ten times the shortfall |
| Penalty for underpaying | Up to six months' jail or ₹500 fine (central text) | Fine up to ₹50,000; repeat: jail up to three months or ₹1 lakh |
Labour welfare fund contribution, by State
A separate State-level deduction, unrelated to the minimum wage: each participating State runs a board funded mostly by employers. Like professional tax, it is set State by State.
| State | Employee | Employer | Government | How often | As of |
|---|---|---|---|---|---|
| Karnataka | ₹20 | ₹40 | ₹20 | Once a year | ₹20 / ₹40 / ₹20 set by Karnataka Act 21 of 2017, from 6 April 2017 |
| Maharashtra | ₹25 | ₹75 | ₹50 | Twice a year | ₹25 / ₹75 / ₹50 from June 2024, after an amendment to s.6BB |
| Telangana | ₹2 | ₹5 | — | Once a year | ₹2 / ₹5 under s.10 of the 1987 Act; no later revision found |
| West Bengal | ₹3 | ₹15 | — | Twice a year | ₹3 / ₹15, as shown on the board's pages in July 2024 |
| Tamil Nadu | ₹20 | ₹40 | ₹20 | Once a year | ₹20 / ₹40 / ₹20 from 2 December 2022 (G.O.(Ms) No.161, Gazette No.538) |
Labour welfare fund in Karnataka
- When: From December wages, for each employee on the register on 31 December; by 15 January of the following year.
- Who is covered: Factories, bus services, plantations and other establishments that employed more than fifty persons in the past year.
- What the fund provides: Educational assistance for children of workers earning up to ₹35,000 a month.
Not verified: A later amendment is reported to have raised the contributions and lowered the fifty-person threshold; it could not be read officially, so confirm the current figure with the board.
Karnataka Labour Welfare BoardLabour welfare fund in Maharashtra
- When: From June and December salaries; not stated on the board's site.
- Who is covered: Factories, shops and establishments with five or more workers, and motor transport; senior managerial and supervisory staff are excluded.
- What the fund provides: Scholarships, from school to PhD and study abroad; Help with serious-illness treatment up to ₹25,000; 226 labour welfare centres.
Not verified: The deposit due date, and the current supervisory wage limit.
Maharashtra Labour Welfare BoardLabour welfare fund in Telangana
- When: Recovered from wages in the manner the Rules prescribe; prescribed in the Rules, which could not be read.
- Who is covered: Establishments that employed twenty or more persons in the past year; managers, supervisors above ₹1,600 a month, apprentices and part-timers are excluded.
- What the fund provides: Welfare centres, libraries, sports and holiday homes (s.12 purposes).
Not verified: The due date and deduction month, set in Rules that could not be read.
Telangana Labour DepartmentLabour welfare fund in West Bengal
- When: For the half-years ending 30 June and 31 December; 15 July and 15 January, online with Form D.
- Who is covered: Factories, transport undertakings, commercial establishments with ten or more persons and places of entertainment, including contract labour.
- What the fund provides: Scholarships and book grants; Holiday homes at Bakkhali, Digha and Darjeeling.
Not verified: A 19 November 2024 notification that may change the rates could not be retrieved; ₹3 / ₹15 was last confirmed in July 2024.
West Bengal Labour Welfare BoardLabour welfare fund in Tamil Nadu
- When: From December wages, for each employee on the register on 31 December; before 31 January of the following year, with Form A.
- Who is covered: Establishments employing five or more persons; managers, supervisors above ₹15,000 a month, apprentices and part-timers are excluded.
- What the fund provides: Marriage, death and funeral assistance; Educational help and book allowances; Spectacles reimbursement; Four holiday homes.
Minimum wages and the labour welfare fund: questions people ask
Is the Minimum Wages Act 1948 still in force?
How often are minimum wages revised in India?
What can I do if I am paid less than the minimum wage?
What is the difference between minimum wage, fair wage and living wage?
What is the labour welfare fund deduction on my payslip?
How much is the labour welfare fund contribution?
Is there a national minimum wage in India?
Related tools
Sources for the figures on this page
The Code on Wages 2019 in force, and the Minimum Wages Act 1948 repealed
PIB, 25 November 2025: the four Labour Codes, including the Code on Wages 2019, "are being made effective from 21st November 2025, rationalising 29 existing labour laws". Lok Sabha Unstarred Question 3467, answered 10 August 2026: "The Code on Wages, 2019 which came into effect from 21.11.2025, has subsumed the provisions of the Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965 and Equal Remuneration Act, 1976." Code s.69(1) repeals the four Acts; s.69(2) continues notifications and orders made under them so far as not contrary to the Code.
View sourceChecked 2026-11-01
The Minimum Wages Act 1948: coverage, rate-fixing, wages, claims and penalties
Minimum Wages Act 1948 (in force 15 March 1948), as published by the Ministry of Labour & Employment: s.2(b) appropriate Government; s.2(g) scheduled employment; s.2(h) wages; s.3 fixing and five-yearly review of rates; s.4 basic rate plus cost of living allowance; s.5 committee and notification methods; ss.7–9 advisory boards; s.12 duty to pay; s.20 claims within six months, compensation up to ten times the shortfall; s.22 imprisonment up to six months or fine up to ₹500 for paying less than the minimum (central text).
View sourceChecked 2026-11-01
The Code on Wages 2019: universal minimum wage, rate-fixing, floor wage, claims and penalties
Code on Wages 2019 (29 of 2019), Ministry of Labour & Employment text: s.5 ("No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate Government"); s.6(6) rates by skill (unskilled, semi-skilled, skilled, highly-skilled) and/or geographical area; s.7 basic rate plus cost of living allowance; s.8(4) review "ordinarily at an interval not exceeding five years"; s.9 floor wage fixed by the Central Government, below which no minimum rate may be set; s.45 claims within three years, compensation up to ten times; s.54 fine up to ₹50,000 for paying less than the amount due, and on a repeat within five years imprisonment up to three months or fine up to ₹1 lakh. No floor wage amount had been notified as of the Lok Sabha reply of 10 August 2026.
View sourceChecked 2026-11-01
What counts as wages under the Code on Wages
Ministry of Labour & Employment, FAQs on Labour Codes (January 2026), on s.2(y) of the Code on Wages: wages are basic pay, dearness allowance and retaining allowance; "If the allowances (except gratuity and retrenchment compensation) exceeds 50% of all remuneration, the excess amount shall be added back to wages"; performance incentives, ESOPs, variable pay and reimbursements are not wages; "The definition of wage has come into force with notification of the Code w.e.f. 21st Nov, 2025."
View sourceChecked 2026-11-01
The three wage levels, and the 2019 national minimum wage recommendation
Report of the Expert Committee on Determining the Methodology for Fixing the National Minimum Wage (Ministry of Labour & Employment, January 2019), paras 2.7–2.15: the tripartite Committee on Fair Wages (1948) defined the minimum wage ("not merely for the bare sustenance of life, but also for the preservation of the efficiency of the worker"), the living wage (frugal comforts including education, health and insurance against old age) and the fair wage between them, linked to productivity and capacity to pay. A Fair Wages Bill was never passed. The 2019 Committee recommended a national minimum wage of ₹375 a day at July 2018 prices; it was not implemented.
View sourceChecked 2026-11-01
Central-sphere minimum wage rates (Chief Labour Commissioner), from 1 April 2026
Office of the Chief Labour Commissioner (Central), VDA orders dated 30 March 2026, effective 1 April 2026: "the undersigned hereby revises the rates of Variable Dearness Allowance on the basis of the average Consumer Price Index for Industrial workers reaching 424.80 from 413.52 as on 31.12.2025"; issued under s.69(2) of the Code on Wages and in force until a corresponding order under s.7(2). Basic rates fixed by notification of 19 January 2017; VDA revised from 1 April and 1 October each year. Read on an archived copy of clc.gov.in; an October 2026 order could not be read.
View sourceChecked 2026-11-01
Labour welfare fund, Karnataka: ₹20 / ₹40 / ₹20 set by Karnataka Act 21 of 2017, from 6 April 2017
Karnataka Labour Welfare Fund Act 1965, s.7A (contributions substituted by Karnataka Act 21 of 2017), s.2(2) and s.2(4), as consolidated on India Code (archived copy, June 2024); KLWB press note on educational assistance.
View sourceChecked 2026-11-01
Labour welfare fund, Maharashtra: ₹25 / ₹75 / ₹50 from June 2024, after an amendment to s.6BB
Maharashtra Labour Welfare Board, contribution and scheme pages on mlwb.in (read 1 November 2026). The board's own FAQ still quotes the pre-2024 rate of ₹12 / ₹36 / ₹24.
View sourceChecked 2026-11-01
Labour welfare fund, Telangana: ₹2 / ₹5 under s.10 of the 1987 Act; no later revision found
Telangana Labour Welfare Fund Act 1987, s.2(2), s.2(4), s.10 and s.12 (archived copy of the Labour Department's Act page, May 2024); district labour pages still state "contribution Rs.7/- per worker per year".
View sourceChecked 2026-11-01
Labour welfare fund, West Bengal: ₹3 / ₹15, as shown on the board's pages in July 2024
West Bengal Labour Welfare Board, employers' notice and FAQ (archived copies, July 2024); WB Labour Welfare Fund (Amendment) Acts of 2017 (rate as notified by the State) and 2023 (supervisor wage limit raised to ₹10,000 a month, online payment, higher fines).
View sourceChecked 2026-11-01
Labour welfare fund, Tamil Nadu: ₹20 / ₹40 / ₹20 from 2 December 2022 (G.O.(Ms) No.161, Gazette No.538)
G.O.(Ms) No.161, Labour Welfare and Skill Development Department, published in Tamil Nadu Government Gazette Extraordinary No.538 on 2 December 2022 (employee and Government ₹10 → ₹20, employer ₹20 → ₹40); Rules 1973, rules 11-A and 12; board homepage (archived May 2026) still lists G.O.161 as the operative rate order.
View sourceChecked 2026-11-01
Written and reviewed by Deepak Middha, Chartered Accountant (ICAI, India) and founder of LayoffNext.
Founder of LayoffNext. Chartered Accountant and finance educator who builds free tools for people navigating layoffs.