Chapter II - Minimum Wages
Sections 5 and 6 of the Code on Wages, 2019: Payment and Fixation of Minimum Wages
Updated: 16 September 2026
Sections 5 and 6 form part of Chapter II of the Code on Wages, 2019. Section 5 creates the basic statutory prohibition against paying an employee below the minimum rate of wages notified by the appropriate Government. Section 6 sets out the framework for fixing those minimum rates.
Section 5 - Payment of minimum rate of wages
5. No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate Government.
What Section 5 means
Section 5 imposes a direct obligation on every employer covered by the Code: wages paid to an employee cannot be lower than the minimum rate notified by the Government having authority over the employment. The relevant rate therefore depends on the applicable notification and may differ according to factors permitted by the Code, including skill category and geographical area.
Section 6 - Fixation of minimum wages
6. (1) Subject to the provisions of section 9, the appropriate Government shall fix the minimum rate of wages payable to employees in accordance with the provisions of section 8.
(2) For the purposes of sub-section (1), the appropriate Government shall fix a minimum rate of wages -
(a) for time work; or
(b) for piece work.
(3) Where employees are employed on piece work, for the purpose of sub-section (1), the appropriate Government shall fix a minimum rate of wages for securing such employees a minimum rate of wages on a time work basis.
(4) The minimum rate of wages on time work basis may be fixed in accordance with any one or more of the following wage periods, namely:-
(i) by the hour; or
(ii) by the day; or
(iii) by the month.
(5) Where the rates of wages are fixed by the hour or by the day or by the month, the manner of calculating the wages shall be such, as may be prescribed.
(6) For the purpose of fixation of minimum rate of wages under this section, the appropriate Government,-
(a) shall primarily take into account the skill of workers required for working under the categories of unskilled, skilled, semi-skilled and highly-skilled or geographical area or both; and
(b) may, in addition to such minimum rate of wages for certain category of workers, take into account their arduousness of work like temperature or humidity normally difficult to bear, hazardous occupations or processes or underground work as may be prescribed by that Government; and
(c) the norms of such fixation of minimum rate of wages shall be such as may be prescribed.
(7) The number of minimum rates of wages referred to in sub-section (6) may, as far as possible, be kept at minimum by the appropriate Government.
Meaning and practical effect of Section 6
Section 6 requires the appropriate Government to fix minimum wages within the statutory framework of the Code. It should be read with Section 8, which deals with the procedure for fixing and revising minimum wages, and Section 9, which deals with the Central Government's power to fix a floor wage.
- Time work: minimum wages may be fixed for work remunerated according to time.
- Piece work: a minimum rate may be fixed where remuneration depends on units or pieces produced.
- Protection for piece-rate employees: the Government must also secure a minimum rate on a time-work basis for employees engaged on piece work.
- Wage periods: time-work rates may be fixed by the hour, day or month.
- Classification: skill level and geographical area, or both, are primary considerations under Section 6(6)(a).
- Arduous work: prescribed factors such as difficult temperature or humidity, hazardous work and underground work may also be considered.
The expression "appropriate Government" is defined in Section 2 of the Code and determines whether the Central Government or the relevant State Government is responsible for a particular establishment or employment. The definition should therefore be checked before relying on a minimum-wage notification.
Official legal resources
For authoritative text and current implementation material, refer to the Code on Wages, 2019 - Ministry of Labour and Employment, the 21 November 2025 commencement notification, and the Central Rules notified in May 2026. Actual minimum-wage rates should be verified from the latest notification of the appropriate Government applicable to the establishment and employee.