Minimum Wage

The concept of "Minimum Wage" refers to the lowest amount of remuneration that an employer is legally required to pay to workers for the work performed during a given period. It cannot be reduced by individual or collective agreement.

  • Objective: In India, under the Minimum Wages Act, 1948, the goal is to prevent the exploitation of labor and ensure that workers can afford basic necessities (food, shelter, clothing).

  • Fixation: Wages are fixed based on "scheduled employments" and are updated periodically through Variable Dearness Allowance (VDA) to account for inflation.

  • Constitutional Basis: Paying less than the minimum wage is considered a violation of Article 23 of the Constitution (prohibition of forced labor), as established by the Supreme Court in the PUDR v. Union of India case.

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