CENTRAL GOVERNMENT’S MINIMUM WAGES 2025

Blogs
September 25, 2025

Central Wages • India

CENTRAL GOVERNMENT’S MINIMUM WAGES 2025

How India’s centrally governed industries determine minimum wages, how revisions work, and what employers must do to stay compliant.

Federations & Wage Jurisdictions: CA • US • IN

Canada: Powers are shared between the Federal Government and 10 provinces + 3 territories.
United States: Federal Government, ~50 State Governments, and the District of Columbia as governing units.
India: Central Government + State Governments/Union Territories. Certain industries fall under Central jurisdiction for wages.

Industries Under Central Government for Minimum Wages

(1) Agriculture

(2) Mines

(3) Construction/Maintenance of major roads & highways

(4) Railways, Docks, Ports, Oil fields, major Airports

(5) Sweeping & Cleaning

(6) Watch & Ward

(7) Central Govt. controlled entities

(8) Corporations under a Central Act

(9) Goods sheds, godowns & warehouses

Who Revises & How Often?

The Chief Labour Commissioner (Central) under the Ministry of Labour & Employment revises the Variable Dearness Allowance (VDA) for centrally covered industries.

Last revision period: 1 April 2025 to 30 September 2025. Revisions are based on the Consumer Price Index (CPI) for Industrial Workers and movements in points.

How Rates Are Classified

Skill Categories

(a) Unskilled
(b) Semi-skilled / Unskilled Supervisory
(c) Skilled / Clerical
(d) Highly Skilled

Area Classification

Area A, B, C — based on city/region cost profiles
Each notification prescribes rates by skill × area

What Is the “26-Day” Minimum Wages Rule?

In India, minimum wages are calculated on a 26-day month (6 working days + 1 paid weekly rest). Daily wage = monthly wage ÷ 26. This prevents underpayment in partial months and aligns with the Minimum Wages Act, 1948.

Important: Dividing by 30 or 31 is a common mistake. For compliance, use the 26-day divisor.

Compliance Checklist for Employers

Pay at least the notified minimum wage (skill × area).
Compute overtime where applicable.
Maintain wage registers in prescribed formats.
Track notifications/revisions (VDA, CPI).

Avoid divisor errors — use 26 days.
Map central vs state jurisdiction correctly.
Align payroll systems to effective dates.
Retain proof of communication & payment.

Non-compliance can attract fines up to ₹10,000 and/or imprisonment up to 5 years for severe violations, plus litigation exposure.

Looking Ahead: Code on Wages, 2019

Karma Management is prepared for transitions once the Code on Wages, 2019 is implemented at scale. Our AI-driven engine WeProcess is designed to handle new definitions, thresholds, and state rules as they roll out.

Karma Global’s Role in Minimum Wage Compliance

We partner with enterprises to implement end-to-end wage compliance: mapping central/state applicability, payroll configuration, overtime and register maintenance, and notification monitoring.

“We continue to push the boundaries of how compliance, technology and people intersect—because the future of work demands nothing less,” says Pratik Vaidya, CVO & MD, Karma Management Global Consulting Solutions Pvt. Ltd.

???? For assistance: marketing@karmamgmt.com

CENTRAL GOVERNMENT’S MINIMUM WAGES 2025