Minimum wage fixation and revision in India fall under the purview of the Minimum Wages Act, 1948. This act grants authority to both the Central and State governments to determine wage rates. State governments identify specific employments and establish minimum wage rates in conjunction with Variable Dearness Allowance (VDA). To facilitate this process, wage boards are instituted, responsible for periodically reviewing and adjusting the minimum wage rates. Due to various factors such as regional disparities, sectoral variations, skill levels, and occupational distinctions, minimum wage rates may diverge between states and regions.

The Minimum Wages Act was instituted with the primary objective of safeguarding the rights of workers and ensuring they receive fair and just compensation for their labor. This legislation is applicable to a broad spectrum of workplaces, including various establishments, factories, business premises, and diverse industrial sectors. While the Act typically encompasses scheduled industries, certain unscheduled industries might be exempted. However, it is important to note that individual states have the authority to augment the Act’s provisions by establishing minimum wage standards for specific job roles or sectors through periodic revisions.

Violation of the Minimum Wage Act, whether through paying less than the prescribed minimum wage or completely failing to remunerate employees, is considered a legal transgression under the central legislation. The consequences for such infringements can be severe, potentially resulting in penalties that encompass imprisonment for a period of up to 5 years and fines amounting to Rs. 10,000, as stipulated in Section 22 of the Act.