Wages

What is the national floor wage?

The legal minimum no State may set wages below, under s.9 of the Code on Wages. None has been notified yet, so Tamil Nadu's own rates still govern.

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The national floor wage is a minimum the Central Government fixes under section 9 of the Code on Wages 2019, below which no State may set its minimum wages. The Code creates it and the Central Rules of May 2026 set out how it is to be fixed, but no floor wage has been notified yet. Until one is, the wage a Tamil Nadu site must pay is the State's own notified minimum. The ₹176 figure quoted online is an older, non-binding benchmark.

What the Code says

It is a statutory floor under State minimum wages, fixed by the Centre. Section 9 of the Code on Wages has three parts:

  • The Centre fixes it "taking into account minimum living standards of a worker", and may fix different floor wages for different geographical areas (s.9(1)).
  • No State may go below it. Minimum wages fixed by a State under section 6 "shall not be less than the floor wage", and a State whose existing minimum is already higher may not cut it down to the floor (s.9(2)).
  • The Centre may consult first, obtaining the advice of the Central Advisory Board and consulting the State Governments (s.9(3)).

Rule 10 of the Code on Wages (Central) Rules 2026 fills in the method. The Board is consulted on the minimum living standard, "including the food, clothing, housing and any other factors" the Centre considers appropriate, the consultation is circulated to the States, and the floor wage is revised "ordinarily at an interval not exceeding five years", with periodic adjustment for the cost of living (G.S.R. 343(E), 8 May 2026).

Has a floor wage been fixed yet?

Not as far as we can find. The four Labour Codes came into force on 21 November 2025 [VERIFY: Code on Wages commencement notification] and the Central Rules setting the method were notified on 8 May 2026, but we found no notification fixing an amount under section 9 as of 23 October 2026 [VERIFY: the e-Gazette, for any floor-wage notification]. A floor wage is a figure the Centre has to publish, so a number that appears without a Gazette notification behind it is not the floor wage.

The old benchmark, and what the experts proposed

Before the Code there was a National Floor Level Minimum Wage, and it was never binding. It was introduced in 1996 at ₹35 a day and adjusted for prices over the years. The Ministry advised States to fix their minimum wages at or above it, but it had no legal force (Expert Committee report, January 2019).

FromNational Floor Level Minimum Wage, per daySource
1996₹35Expert Committee report, 2019
February 2004₹66Expert Committee report, 2019
April 2011₹115Expert Committee report, 2019
2013₹137PIB, 2015
1 July 2015₹160PIB, 2015
June 2017₹176Expert Committee report, 2019

The Ministry's Expert Committee on the methodology for a national minimum wage, reporting in January 2019, proposed something different in kind. It recommended a single national minimum wage of ₹375 a day, or ₹9,750 a month, as of July 2018, with an extra allowance of up to ₹55 a day for urban workers, and regional values from ₹342 to ₹447 a day. It built the figure on an intake of 2,400 calories, 50 grams of protein and 30 grams of fat per adult per day. That was a recommendation, not a rate, and the floor wage under the Code has not been fixed on it or on any other basis yet.

What it means for a Tamil Nadu site

Very little today. The figure that governs the wage bill is the minimum Tamil Nadu notifies for each scheduled employment, by zone and skill category, with its dearness allowance reset every April. A contract rate built on that is built on the right number.

  • Pay to the State's notified minimum. Check every category on the contractor's wage sheet against the Tamil Nadu schedule for the site's industry and zone, not against a national figure.
  • The site funds the contractor for it. Rule 11 of the Central Rules says that where employees work through a contractor, the proprietor of the establishment "shall pay to the contractor, the amount payable in respect of the wages of employees in accordance with the provisions of the Code".
  • Write contracts to the statutory minimum, not to a number. A work order that says rates will be at least the minimum notified from time to time carries any future change automatically; one that names a rupee figure has to be renegotiated.

What to watch for

A notification in the Gazette, and then each State's response. When the Centre fixes a floor wage, any State minimum below it has to be raised to it, and the five-yearly revision cycle starts. For most Tamil Nadu industrial categories the effect depends on where the floor is set against the State's existing rates, which nobody can say until the number exists. The practical step now is to make sure the contract and the wage sheet follow whatever the law fixes, rather than a figure from a press summary.

How Velura Services helps

We pay every worker we deploy at least the Tamil Nadu minimum notified for their employment, zone and skill category, and reset rates when the dearness allowance changes each April. Our work orders tie rates to the statutory minimum as notified from time to time, so a new floor wage or State revision flows through without renegotiation.

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Sources

Frequently asked questions

What is the national floor wage under the Code on Wages?

It is a minimum the Central Government fixes under section 9 of the Code on Wages 2019, taking into account the minimum living standards of a worker. No State may set its minimum wages below it, and a State whose minimum is already higher may not reduce it. The Centre can fix different floor wages for different geographical areas.

Has the national floor wage been notified?

We found no notification fixing an amount as of 23 October 2026. The Code on Wages (Central) Rules 2026, notified on 8 May 2026, set out how the floor wage is to be fixed and revised, but the figure itself has to be published by the Centre. Until it is, State minimum wages are the rates that apply.

Is ₹176 a day the national minimum wage?

No. ₹176 a day from June 2017 was the National Floor Level Minimum Wage, a non-binding benchmark the Ministry of Labour advised States to stay above under the old Minimum Wages Act. It had no legal force. The statutory floor wage under section 9 of the Code on Wages is a different thing and has not yet been fixed.

What minimum wage does a Tamil Nadu site pay contract workers?

The minimum Tamil Nadu notifies for the scheduled employment, by zone and skill category, with the dearness allowance reset each April. A national floor wage, once fixed, only matters if a State rate is below it. Under the Code on Wages (Central) Rules 2026, the establishment's proprietor pays the contractor the wage amount due under the Code.