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Although the floor level minimum wage in India is 178 rupees (INR) per day, the reality for employers looking to hire there is more nuanced. Because many individual states set their own rates, the minimum wage in India is calculated by using a complex equation that encompasses these factors:
- Region
- Industry
- Age
- Occupation
This makes India a complex hiring ground for international business owners seeking to take advantage of the skilled and affordable workforce the country provides.
This article discusses minimum wages in India in general before offering further details on how an employer of record (EOR) platform can help businesses hire and manage employees there more easily.
Worker Classifications in India
The Minimum Wages Act of 1948 serves as India’s central labor legislation. Among other things, it divides the Indian labor force into four general categories, as listed below:
Regardless of the location you’re hiring from, the minimum wage in India will vary depending on the individual candidate’s skill level (more below). Universally speaking, unskilled workers receive the lowest wages, while those in the semi-skilled and skilled labor categories receive larger amounts. Although a minimum wage also applies to highly skilled professions, the education and training required to execute these roles typically eliminate any need for such discussion.
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Talk to an expertMinimum Wage in India by State
State governments enjoy exceptional leeway in determining their own minimum wages in India. Each can fix wage rates for the following types of work:
As mentioned above, minimum wages vary by profession and skill level, labor force categories, and state-determined work types. The following table outlines the minimum wage in India for different states, taking into account special zones where it applies.
Minimum Wage in India by State
The complexity of the calculation determining minimum wage in India is further underscored by how incomplete this table is. For each of the above states that we cannot provide wage amounts, corresponding profession-by-profession charts offer exacting details of the minimum wage requirements employers must meet before hiring in that area.
Business owners have the option to take one of two paths:
- Hire directly: Begin the process of setting up a legal entity based in India, which can take weeks or months to complete, depending on where you’re trying to source talent. Once established, you’ll need to hire competent HR professionals to ensure your organization follows all labor laws as stringently as possible.
- Hire through an employer of record (EOR): Working with an established EOR platform eliminates your responsibility to set up a legal entity. In addition, the EOR will handle compliance for you directly.
History of the Minimum Wage in India
While the functioning minimum wage varies depending on the region, specialization, and industry, the floor level minimum wage in India has remained relatively stagnant over the last ten years, with only one moderate increase in 2017.
Floor Level Minimum Wage in India, 2015-2025
The lack of YoY wage increases is due to several reasons:
- Low Cost of Living: The cost of living in India has remained relatively stagnant over the same period, effectively eliminating pressure to increase the minimum annually.
- Regional Specialization: Because state governments have already altered their minimum wage offerings, federal representatives have little, if any, need to raise the federal bar.
With that in mind, minimum wages are typically updated every five years, with the last update due in 2024. This indicates that the floor level minimum wage in India will likely remain the same until 2029.
Use Skuad’s employee cost calculator for up-to-date insights on various employment costs associated with your global expansion.
How Does Minimum Wage in India Compare to its Neighbors?
Depending on precisely where in India you source talent, you may find that you’re paying either the highest or lowest minimum wage compared to the nations comprising the subcontinent’s geographic neighbors.
Per Day Minimum Wage in India, Compared
*Amounts are expressed in USD for more direct comparison against differing currencies.
Average Income in India
As per data on Glassdoor, the average annual income in India (base pay) in 2024 was approximately Rs 9,45,489 (10917 USD).
Also, the average monthly income in India falls between Rs. 8000 (92 USD) and Rs. 1,43,000 (1651 USD).
Now, let’s look at the state-wise breakdown:
Average Income in India - State-wise Breakdown
Hiring Through an Employer of Record (EOR)
Given the number of minimum wage variances in India, most business owners typically simplify the process by working through an employer of record (EOR). In addition to setting up foreign legal entities on behalf of US business owners, EORs also handle every step required to add new employees to your company, including:
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Skuad’s EOR platform supports employers through every stage of the employee lifecycle by providing:
- Localized contracts.
- Centralized HR files for new employees and potential hires.
- Logistical trackers for sending employees the necessary work equipment.
This puts your company on excellent footing with employees as they are getting started.
You want your employees to be paid on time and in a way that‘s convenient for them. This helps you build healthy working relationships with your employees.
Working with an EOR platform like Skuad provides business owners with multi-currency accounts that save on fees and exchange rates while giving you access to 100+ currencies to work with.
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Take advantage of an easy-to-use centralized dashboard that puts all your employees’ vital information at your fingertips, allowing you to:
- Manage employee benefits.
- Easily track and approve reimbursements for equipment or travel.
- Efficiently calculate employee taxes specific to their areas.
These options take the headache out of cross-border hiring, ensuring that your new employees fit seamlessly into company operations.
Hiring in India? Talk to Our Team
Skuad’s experts are here to assist business owners from every corner of every industry to achieve their goals, whether you’re hiring salaried employees or minimum wage. In India, that means working with you to ensure high-quality localized contracts and a constant finger on the pulse of the country’s shifting labor laws. Talk to us using the link below to see what we can do for you.
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