Minimum wage in India (2026)

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

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India has no single national minimum salary in 2026: under the Code on Wages, 2019, in force since November 21, 2025, an employer must pay the minimum rates notified by the appropriate government, the Central Government for central-sphere employments and the state government for the rest (Ministry of Labor and Employment, compliance handbook for employers). Your floor therefore depends on the state, the skill level and the area, and most rates are notified per day. Convert any rate at about 94.96 rupees per US dollar (ECB cross rate, October 16, 2026), then add provident fund, insurance and bonus costs, which some EOR tools leave out.

A notified minimum wage in India is the rate a central or state government publishes for a category of employment, skill level and area, which employers must pay under Section 5 of the Code on Wages.

National minimum wage
Noneno statutory national rate
How pay floors are set
India has no single binding national minimum wage
See Deel pricing on Deel’s site
On this page
  1. Central-sphere rates and state rates
  2. Turning a daily rate into a monthly salary
  3. What an employer adds on a low wage
  4. Hiring in India through an EOR

Central-sphere rates and state rates

The Central Government notifies rates for central-sphere employments such as railways, mines, ports and central public sector undertakings, through the Chief Labor Commissioner (Central). Those rates include a variable dearness allowance that is revised every April 1 and October 1. Every state notifies its own rates, usually by skill level and by area, so two sites in the same state can face different floors.

The Code also provides for a national floor wage below which no state may set its rates. The government handbook we read states no amount for it, so this page gives none.

Turning a daily rate into a monthly salary

Most central and state rates are per day. Multiplying the daily rate by 26 is a common payroll convention for a monthly figure, but we did not find it on an official page, so check the notification that covers the job. We also have no confirmed national average wage for India yet: the official labor force survey data could not be read when we checked.

What an employer adds on a low wage

Low wages pull in more statutory costs in India, not fewer:

  • Provident fund (EPF and EPS): 12% of wages up to INR 25,000 a month, a ceiling raised from INR 15,000 effective September 17, 2026
  • EDLI insurance: 0.5% up to the same ceiling
  • ESIC health insurance: 3.25% for employees earning up to INR 21,000 a month
  • Statutory bonus: 8.33% to 20% for employees under the eligibility limit (Code on Wages s.26)
  • Gratuity: 15 days' wages per completed year, payable after 5 years

Example, for a worker paid INR 20,000 a month (an illustration, not a notified rate): EPF 2,400 + EDLI 100 + ESIC 650 = INR 3,150, or 15.75%, before bonus and gratuity. Under the Labor Codes, allowances above 50% of total pay are added back into wages, which can raise that base.

Hiring in India through an EOR

Some EOR cost tools show 0% employer cost for India, which the list above shows is wrong for most hires. Ask any provider for a payslip-level quote with EPF, ESIC and bonus lines. EOR list prices checked on October 16, 2026 sit between $99 (a starting price at Native Teams, whose help center says EUR 99) and $699 (Oyster); Deel lists $599. Our EOR rankings compare the providers, the India employer of record guide covers the Labor Codes, and the cost calculator and cost index put the statutory items in rupees. Regional pages: Pakistan and China.

See Deel EOR pricing for India on Deel’s site

Frequently asked questions

What is the minimum salary in India?
There is no single national figure in 2026. Under the Code on Wages, 2019, employers must pay the minimum rates notified by the Central Government (for central-sphere employments) or the state government, which vary by skill level and area.
What is the minimum wage in India in USD?
It depends on the state rate that applies. Divide the rupee rate by about 94.96 rupees per dollar, the ECB cross rate for October 16, 2026; most notified rates are daily, so convert the daily figure first.
How often do central minimum wages change in India?
The variable dearness allowance in central-sphere rates is revised twice a year, on April 1 and October 1, through the Chief Labor Commissioner (Central). States revise on their own schedules.
What does an employer pay on top of wages in India?
EPF 12% and EDLI 0.5% on wages up to INR 25,000 a month (from September 17, 2026), ESIC 3.25% for wages up to INR 21,000, a statutory bonus of 8.33% to 20% for eligible staff, and gratuity after 5 years.
Sources (10)
  1. Ministry of Labor and Employment: ESIC coverage FAQ (checked Oct 17, 2026)
  2. ESIC: Contribution rates (checked Oct 17, 2026)
  3. EPFO: EDLI insurance scheme (checked Oct 17, 2026)
  4. European Central Bank: Euro foreign exchange reference rates (rates for Oct 16, 2026)
  5. Deel: Deel pricing (checked Oct 16, 2026)
  6. Payoneer WFM (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
  7. Oyster: Oyster pricing (checked Oct 16, 2026)
  8. Native Teams: Pricing (checked Oct 18, 2026)
  9. Native Teams: Pricing plans, features, benefits and how they work (help center) (checked Oct 18, 2026)
  10. Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes (Central Government Sphere): Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes (Central Government Sphere) (checked October 18, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.