HR Terminology

Minimum Wages

  1. Home
  2. »
  3. Resources
  4. »
  5. Glossary
  6. »
  7. Minimum wages: Definition

Minimum wage is the lowest legally mandated remuneration that employers must pay their employees for the work performed within a specified period.

Minimum wages in India are set by both the Central and State Governments. The minimum wage rates can vary across different states and union territories based on factors such as the type of employment, skill category, and geographical location. It is important to note that these rates are subject to periodic revisions, and the latest rates may vary.

While minimum wage laws provide a basic level of protection for workers, they are just one aspect of labor regulations. Many jurisdictions also have additional regulations regarding working hours, overtime pay, and other employment conditions to ensure the well-being of employees.

FAQ

Minimum wages are typically determined by governmental bodies, either at the federal, state, or local level. These entities consider various factors such as cost of living, economic conditions, and social welfare policies when setting minimum wage rates.

Minimum wage rates are typically subject to periodic reviews and adjustments to account for changes in the cost of living, inflation, and other economic factors. The frequency of updates varies by jurisdiction but is often done annually or biennially.

Employers who fail to comply with minimum wage laws may face legal consequences, including fines, penalties, and potential civil lawsuits from employees. Additionally, non-compliance can harm a company's reputation and lead to loss of trust among stakeholders.

Unlock Your Potential!

Fast Forward Your Digital HR Transformation Journey

Step into the future today, where you can elevate, enhance, and expertly manage your people and processes.