Minimum Wages in Tamil Nadu

1. Minimum Wages
2. Minimum Wages in Tamil Nadu

Download Minimum Wages in Tamil Nadu Official Notification PDF

With a 9.69% growth in real GSDP terms, Tamil Nadu is the second-largest economy in India. In a state where services and industries power the growth story, there would be plenty of employment opportunities.

However, with employment comes the danger of exploitation. So, the state government revises minimum wage rates in Tamil Nadu to ensure fair compensation.

The state government updates the minimum wages in Tamil Nadu once every 6 months. It updates the wage rates to account for the factors that affect the cost of living. You can check the minimum wage notification for Tamil Nadu on the official site of the state’s labor department.

What is the Minimum Wages in Tamil Nadu?

Put simply, minimum wages are the bare minimum amount an employer has to pay to the employee. The minimum wage limits are defined by law. In India, the Minimum Wages Act (1948) specifies the details for setting minimum wage rates.

Minimum wages in Tamil Nadu are updated once a year for scheduled employment. However, as mentioned, the state government updates components like variable dearness allowance twice a year (every 6 months).

The Tamil Nadu government updates the wage rates under The Tamil Nadu Minimum Wages Rules (1953). These wage rates are calculated against various factors, such as CPI. The Tamil Nadu government classifies all the scheduled employments into four zones.

For context:

• Scheduled employment refers to that employment which the state or central government specifies under the Minimum Wages Act (1948).
• Zones refer to different divisions classified by a state government. In Tamil Nadu, there are four zones: A, B, C, and D.

Tamil Nadu Zones Division for Minimum Wage Purposes

Tamil Nadu’s four zones are differentiated because there are various costs of living across the state. Urban regions have higher expenses, including housing and transportation. The cost of living is lower in rural areas than in urban areas. These zones are based on the level of urbanization and the related expenses. The zones are mentioned below in detail.

Zone A: Municipal Corporations

Zone A is the largest and most densely populated urban area. This zone has the highest minimum wage rates than any other zone. These include cities like

• Chennai
• Coimbatore
• Madurai
• Tiruchirappalli
• Salem

Zone B: Municipalities

This zone is smaller than Zone A, i.e., urban areas. The cost of living in these areas is generally lower than in corporations. The minimum wage rate is intermediate in this zone.

Zone C:Townships, Town Panchayats and Cantonments

These zones are small towns and semi-urban localities. The cost of living over here is less than in municipalities. The minimum wage rates over here are set lower.

Zone D: Village Panchayats

These zones are rural areas where the cost of living is the lowest. Zone D had the lowest minimum wage rates when compared to other zones.

Updated Minimum Wages in Tamil Nadu

Date of Notification: 3rd March, 2025

Applicability: 1st April, 2025

I. General Categories

Classes of Employees & Minimum Rates of Basic Wages (per month):

II.Minimum Wage Rates for Chemist and Druggist Shop

III. Minimum Wages for Hair Dressing Saloon/Beauty Parlour

IV. Minimum Wage Rate for Photo Studios

V. Service Shops (Watch/Radio/Bicycle)

Source: Labour Welfare and Skill Development Department

Wrapping up

The Tamil Nadu government ensures that employees are paid fairly for their work. It also accounts for factors affecting the cost of living, such as CPI, while revising the salary structure. In fact, the draft Minimum Wages Rules (2022) also suggests that the state should consider factors like housing, clothing requirements, utility expenses, and even calorie intake.

Employees and employers should be aware of these rules. For employees, it could be the protection that employees need. For employers, they are necessary from a compliance perspective.