Indian minimum-wage law is governed by the Minimum Wages Act 1948 (and the Code on Wages 2019 going forward), which empowers state governments to fix minimum wages for 'scheduled employments'. The result is a state-by-state, occupation-by-occupation matrix that gets revised annually.
For most foreign-employer hires — software engineers, designers, finance analysts, mid-level managers — the gross salary sits well above any minimum wage threshold. The minimum-wage question becomes relevant for office support staff (receptionists, drivers, security), interns, and entry-level roles.
Two layers — Central and State
- Central minimum wages — apply to employments under central government control (railways, mines, central PSUs, etc.). Rare for tech subsidiaries.
- State minimum wages — apply to employments under state control (the vast majority). Each state publishes its own minimum-wage notification, usually revised twice a year (April and October).
Zones and skill categories
Within a state, minimum wages typically vary by:
- Zone — A (metro), B (large city), C (rest of the state). A is highest.
- Skill level — Unskilled, Semi-skilled, Skilled, Highly skilled. Highly skilled is highest.
- Industry — IT services, manufacturing, hospitality, retail etc. each have their own schedule.
A 'Highly skilled' worker in Zone A of Karnataka can have a minimum wage roughly 80-100% higher than an 'Unskilled' worker in Zone C.
We map your roles to the right scheduled employment
FastLegal's compliance consultant maps each of your roles to the relevant state's scheduled-employment schedule and skill category. For salaried roles well above minimum wage this is documentation only. For office support and interns it matters operationally — we flag if any rate is below the floor before payroll runs.
2026 minimum-wage reference (approximate, IT-services & shops Act-covered)
Approximate monthly minimum-wage figures for skilled / clerical workers in commercial establishments (Shops Act covered, including IT services). Verify the live notification before payroll — these revise twice a year.
| State / city | Monthly minimum (approx, INR) | Notes |
|---|---|---|
| Karnataka — Bengaluru (Zone A) | ₹17,500 - ₹22,000 | Code-on-Wages-2019 aligned |
| Maharashtra — Mumbai (Zone I) | ₹17,500 - ₹21,500 | Higher cost-of-living adjustment |
| Telangana — Hyderabad | ₹15,000 - ₹19,500 | Mirrors Andhra |
| Tamil Nadu — Chennai | ₹13,500 - ₹17,500 | Lower than Bengaluru / Mumbai |
| Delhi NCR | ₹17,500 - ₹21,500 | Highest among capitals |
| West Bengal — Kolkata | ₹13,000 - ₹16,500 | |
| Gujarat — Ahmedabad | ₹13,500 - ₹17,000 | |
| Kerala — Kochi | ₹15,500 - ₹18,000 | |
| Rajasthan — Jaipur | ₹13,500 - ₹16,500 |
Code on Wages 2019 — what changes
The Code on Wages 2019 (notified 21 Nov 2025, operational from FY 2026-27) consolidates four existing labour laws including the Minimum Wages Act. The major change: a national floor wage will be notified, below which no state can set its minimum. State-set minimums will continue, but only above the national floor.
The Code also introduces the 50%-of-CTC floor for 'wages' — the Basic + DA portion of compensation must be at least 50% of total remuneration. This affects salary structure design, not the minimum-wage number itself, but it matters because PF, gratuity and many other calculations are based on 'wages' which now has a stricter definition.
What this means for foreign employers
- Senior engineering salaries are nowhere near minimum-wage triggers. No real action needed.
- Interns paid below minimum wage — illegal unless they're enrolled in an apprenticeship scheme. Pay at or above minimum.
- Office support staff (receptionist, driver, peon) — verify gross against the state's current minimum.
- Annual revisions in April and October — update payroll automatically; the floor moves but your senior salaries stay well above.
- Code on Wages 50% floor — restructure CTC so Basic ≥ 50% of total CTC. This affects PF and gratuity bases.
Frequently asked questions
Is the central minimum wage applicable to private companies?+
Only for employments under central government control. Almost all private-sector employment, including tech, is under state minimum-wage schedules.
What's the penalty for paying below minimum wage?+
Recovery of arrears for the period of underpayment plus damages up to 10x the shortfall, plus prosecution under Section 22 of the Minimum Wages Act. Practically: pay the shortfall plus a small penalty if caught.
Do contractor / agency staff fall under the same minimum wage?+
Yes — the contract labour falls under the principal employer's responsibility. If your housekeeping vendor pays its staff below minimum, you're jointly liable.
How often does the minimum revise?+
Most states revise twice a year — 1 April and 1 October. Some states revise only annually. Your payroll provider should auto-apply the revisions.
Stop reading circulars. Start running clean payroll.
Every FastLegal plan ships with a dedicated payroll consultant — a real human who runs your PF, ESI, PT, TDS and Form 16 issuance, configured to your salary structure, your state, and your hiring plan. You sign off. We do the rest.