- Section 5 of the Code on Wages bars paying any employee less than the notified minimum rate.
- The Code took effect on 21 November 2025 and replaced the Minimum Wages Act, 1948.
- A national floor wage is provided for in section 9, but no figure has been notified as of October 2026.
- Rates are fixed daily. Multiply by 26 for the monthly rate and divide by 8 for the hourly rate.
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How is minimum wage set in India in 2026?
States set it, the Centre will set a floor beneath it, and a dearness element moves it twice a year.
Coverage widened. Under the Code, minimum wage now applies to every worker, as the government’s Labour Codes release put it. State rates combine a basic rate and a variable dearness allowance (VDA), which Maharashtra revises every 1 January and 1 July.
The floor wage is still a gap. Once notified, no state may set rates below it, and states already paying more cannot cut them. Taxmann’s note on the floor wage records no notification so far, and trackers checked in October 2026 report the same position. Hence state rates operate today without a statutory national floor.
Maharashtra’s own rules under the Code are still being finalised, so its notified wage schedules continue.
What is the minimum wage in Pune for 2026?
For July to December 2026, Pune falls in Maharashtra’s Zone I, which covers municipal corporation limits and industrial areas within 20 km of them.
| Skill level | Basic | VDA | Monthly total | Per day |
|---|---|---|---|---|
| Skilled | ₹11,632 | ₹4,134 | ₹15,766 | ₹606.38 |
| Semi-skilled | ₹10,856 | ₹4,134 | ₹14,990 | ₹576.54 |
| Unskilled | ₹10,021 | ₹4,134 | ₹14,155 | ₹544.42 |
Check the conversion yourself. ₹606.38 × 26 = ₹15,765.88, which rounds to ₹15,766. Divide the daily rate by 8 and you get ₹75.80 an hour, which the central rules use to derive a daily rate when the working week is shorter than six days.
Test pay against wages as the Code defines them, not CTC. Employer PF and gratuity are excluded from “wages” under section 2(y).
Let’s say a Pune office assistant’s CTC is ₹15,344, including ₹1,644 of employer PF at 12%. Cash wages are ₹13,700, which is ₹455 below the ₹14,155 unskilled rate. That’s a breach.
For a dollar view, see our explainer on India’s minimum wage in USD.
Why does minimum wage matter beyond junior roles?
Because other calculations borrow it. Under the Code on Wages, statutory bonus is calculated on ₹7,000 a month or the minimum wage, whichever is higher. Overtime at twice the normal rate is also defined for workers whose minimum rate is fixed under the Code.
How does Remunance apply minimum wage rules to your team?
Remunance hires for clients across 34 Indian cities, so we check each salary against the right state, zone and skill schedule, and refresh when VDA changes in January and July. We also run bonus, overtime and leave administration on the same wage base. If you’re hiring support or operations staff in India, check your pay bands with us.
What else do people ask about minimum wage in India?
Is there one national minimum wage in India?
No. Each state notifies its own rates by zone and skill. The Code on Wages allows a national floor wage, but none has been notified yet.
How often does minimum wage change in Maharashtra?
Twice a year. The VDA component is revised every 1 January and 1 July, so check the new schedule each half-year and correct any salary that has fallen behind.
Does minimum wage apply to IT employees?
Yes. The Code covers all employees. In practice most IT salaries sit well above it, so the risk lies in support and junior roles.
Planning a hire in India?
Our founding team has run payroll and hiring in India for 22+ years, first as Remunance Systems, which was later acquired by ADP.