Minimum Wage

As per the Indian Constitution, 'Minimum Wage' has been defined as the level of income for skilled and unskilled workers which ensures a sustaining standard of living while also providing for some measure of comfort. A minimum wage not just supports the bare level of employment, but also seeks for viable continuous improvement. It aims at preventing exploitation of labour.


Minimum Wages For States Across India

The states which impose minimum wages in India are listed below: (Click on the state name for more details)

Delhi
Effective date:1st Oct, 2020

Fixation and Revision of Minimum Wages

Under the Minimum Wages Act, 1948, both Central and State government have dominion over fixing the wages. The State governments fix their own scheduled employments and further release the rates of Minimum Wage along with the VDA (Variable Dearness Allowance). Wage boards are set up to review and fix minimum wages at specified intervals. The wage rates in scheduled employments differ across states, sectors, skills, regions and occupations owing to a lot of differentiating factors. Hence, there is no single uniform minimum wage rate across the country and the revision cycle differs for each state.

Scope and Applicability

Minimum Wages Act was enforced to ensure the employers did not exploit employees with insufficient wages. The Act is applicable on all establishments, factories, place of business and industry types. Unscheduled industries are generally excluded, though a state can add a minimum wage for an occupation or specify it for a sector during a revision cycle.

Consequences of Non-Compliance

Under-payment and non-payment of Minimum Wage is deemed as an offence under the Central Act. The penalty may range from upto 5 years imprisonment and a fine of Rs. 10000/- (under Section 22 of the Act).

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Latest Minimum wages for Shops & Establishment in Delhi

Important Note: The Minimum wages rates have been released effective 1st October 2020 hence employers may exercise caution by providing rates as per retrospective effective date

Effective from Date: 1st Oct, 2020 Updated As On: 7th Dec, 2020
Class of Employment Class of workers Basic Per Month VDA Per Month Total Per Day Total Per Month
Unskilled NA 14842.00 650.00 596.00 15492.00
Semi-skilled NA 16341.00 728.00 657.00 17069.00
Skilled NA 17991.00 806.00 723.00 18797.00
Clerical And Supervisory Staff Non Matriculates 16341.00 728.00 657.00 17069.00
Clerical And Supervisory Staff Matriculates But Not graduates 17991.00 806.00 723.00 18797.00
Clerical And Supervisory Staff Graduates And Above 19572.00 858.00 786.00 20430.00

Download Latest Notification(s) Here

The Delhi Minimum Wages Notification 1st October 2020.pdf

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