A Guide to Minimum Wage in India

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What factors influence the calculation of minimum wage in India?

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Minimum wage in India is influenced by state, area within the state based on development level, industry, occupation, and skill level.

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How many different types of jobs does India define for unskilled workers?

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India defines nearly 2,000 different types of jobs for unskilled workers.

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What is the role of the variable dearness allowance (VDA) in minimum wage calculation?

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The VDA accounts for inflationary trends and is included in the monthly minimum wage calculation.

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What is the purpose of the Code on Wages Act, 2019?

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The Code on Wages Act, 2019 aims to replace multiple labor regulations and ensure that employers do not pay workers less than the stipulated minimum wage.

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What is a 'living wage' and when is it expected to be established in India?

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A living wage is expected to exceed the basic minimum wage and cover essential social expenditures; it is being considered for establishment by 2025.

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What is the average national-level minimum daily wage in India?

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The average national-level minimum daily wage in India is approximately INR 178 (US$2.13).

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What are the minimum wage rates for unskilled workers in Delhi effective October 1, 2024?

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The minimum wage for unskilled workers in Delhi will rise from INR 17,494 to INR 18,066.

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What is the maximum penalty for non-compliance with minimum wage regulations?

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The maximum penalty for non-compliance is imprisonment for three months and/or a fine of up to INR 100,000 (US$1,197.85).

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Why does India not have a national minimum wage?

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India does not have a national minimum wage because labor matters are regulated by both state and central governments, leading to multi-jurisdictional regulation.

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What are the three new labor codes approved by India's parliament in 2020?

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The three new labor codes are the Industrial Relations Code Bill, 2020; Code on Social Security Bill, 2020; and the Occupational Safety, Health and Working Conditions Code Bill, 2020.