Section 9 of the Code on Wages, 2019: Power of Central Government to Fix Floor Wage

Section 9 of the Code on Wages, 2019 creates a statutory floor below which the minimum rates of wages fixed by the appropriate Government under Section 6 cannot fall. It also protects a higher minimum wage already fixed by an appropriate Government from being reduced merely because the Central Government fixes a lower floor wage.

Current legal status: Section 9 forms part of Sections 1 to 41 of the Code on Wages, 2019 brought into force by the Central Government with effect from 21 November 2025. The statutory text and commencement notification should be read with the rules and notifications in force from time to time.

Text of Section 9 - Floor Wage

9. (1) The Central Government shall fix floor wage taking into account minimum living standards of a worker in such manner as may be prescribed:

Provided that different floor wage may be fixed for different geographical areas.

(2) The minimum rates of wages fixed by the appropriate Government under section 6 shall not be less than the floor wage and if the minimum rates of wages fixed by the appropriate Government earlier is more than the floor wage, then, the appropriate Government shall not reduce such minimum rates of wages fixed by it earlier.

(3) The Central Government may, before fixing the floor wage under sub-section (1), obtain the advice of the Central Advisory Board constituted under sub-section (1) of section 42 and consult State Governments in such manner as may be prescribed.

What is a floor wage under Section 9?

A floor wage is the wage benchmark fixed by the Central Government under Section 9. While fixing it, the Central Government is required to take into account the minimum living standards of a worker. The provision also permits different floor wages for different geographical areas.

Relationship between Section 9 and minimum wages under Section 6

Section 6 of the Code on Wages, 2019 requires the appropriate Government to fix minimum rates of wages. Section 9(2) places an important statutory restriction on that power: the minimum wage fixed under Section 6 cannot be lower than the floor wage fixed by the Central Government.

Protection of an existing higher wage: If the appropriate Government had already fixed a minimum wage above the floor wage, Section 9(2) does not permit that higher minimum wage to be reduced merely to match the floor wage.

Consultation before fixing the floor wage

Under Section 9(3), the Central Government may obtain the advice of the Central Advisory Board constituted under Section 42(1) and consult State Governments before fixing the floor wage. This provision links the national floor-wage mechanism with the advisory and consultative framework established by the Code.

Why Section 9 is important

Section 9 establishes a nationwide statutory baseline while allowing geographical differentiation. The appropriate Government remains responsible for fixing minimum wages under Section 6, but those rates are subject to the floor created under Section 9. The provision therefore operates as a minimum threshold rather than as a rule requiring every State or sector to have an identical wage rate.

Official legal resources

For the authoritative statutory text, see the Code on Wages, 2019 - Ministry of Labour and Employment. For commencement, see the Gazette notification dated 21 November 2025. The Ministry has also published draft Code on Wages (Central) Rules, 2025; users should verify the latest final rules and notifications before relying on procedural details.

Related provisions

Section 9 should be read with Section 7 on components of minimum wages, Section 8 on the procedure for fixing and revising minimum wages, and Section 10 on wages for an employee working less than a normal working day.

Note: This page is a general legal information resource. Wage rates and implementing rules may be changed by notification. Check the latest Central and applicable State or Union Territory notifications for current rates and compliance requirements.