Minimum Wages in Andhra Pradesh

1. Minimum Wages
2. Minimum Wages in Andhra Pradesh

Download Minimum Wages in Andhra Pradesh Official Notification PDF

The minimum wages in Andhra Pradesh are set to protect workers from unduly low payments. With the help of daily labor wages in AP and the expansion of businesses, workers can contribute to the state’s economic growth. The government of Andhra Pradesh fixes the minimum wage rates in the state to reduce inequality and gender bias and overcome poverty.

In Andhra Pradesh, industries like cement, textile, pharmaceuticals, agro, food processing, automobiles, petrochemicals, IT sectors, and electrical engineering, among many more, are flourishing. Not only that, Visakhapatnam is experiencing industrialization and has become an industrial hub. According to recent updates, textile industries are facing major challenges due to a lack of support from the government and increased power supply rates. With this, workers and laborers faced problems like reduced wages and job losses.

To check the minimum wages in Andhra Pradesh, visit the Labor Department’s official website. Employers can find the latest notification under the “minimum wages” section. This includes all the details of the minimum wage rates according to skill types and sectors. Contacting the Labor Commissioner’s office is also an option for more information.

What is the Minimum Wage in Andhra Pradesh

Minimum wages in Andhra Pradesh are defined in such a way that they help implement other social security policies and improve literacy rates. The research shows that Andhra Pradesh reportedly has a comparatively low literacy rate of 66.4%. For this reason, wages are decided after discussing various terms for scheduled employment and working conditions. The effective date for minimum wages in Andhra Pradesh is October 1, 2024. The government notification was the revision was released on September 25, 2024.

The minimum wages in Andhra Pradesh are different from those of other states. The state is undergoing industrial growth and modernization, which is seen mainly in Tirupati for pharmaceuticals and agro-processing in Guntur. The different economic conditions in various regions within the state are one of the main reasons for setting a least acceptable wage. The labor rates are also decided keeping in mind the local regulations and cost of living.

In some regions of Andhra Pradesh like Vijayawada and Visakhapatnam, the minimum wages are higher due to advanced skill levels and the standard of living. When compared to this, some regions have low minimum wages, as the area might not be advanced yet.

The government of Andhra Pradesh provides basic wages under the Minimum Wages Act, 1948. The State government of Andhra Pradesh also has Minimum Wages Rules, 1960. This will also monitor and manage the Act. The Minimum Wages Act is applicable to all establishments and business places. At least once a year or whenever necessary, the government will fix and revise the minimum wages to their discretion.

The minimum wages in Andhra Pradesh are calculated using the Consumer Price Index. The government has divided the state into Zone I and Zone II.

AP Zones Division for Minimum Wage Purposes

The government of Andhra Pradesh has divided the state into two zones to manage minimum wages properly. These are mentioned below.

Zone I

This zone includes all the areas under municipal corporations and special-grade municipalities. It also includes areas such as commercial establishments and business enterprises. The cost of living in this zone is higher as there is a greater demand for labor and productive force.

Zone II

This includes all the other areas of the state not mentioned in Zone I, including rural areas and small towns. The cost of living in this zone is lower than Zone I, as it has a lower cost of living and other economic activities like daily necessities, housing, and transportation.

Current Minimum Wages for Shops and Establishments in AP

In this table, we will examine the minimum wages in Andhra Pradesh and the detailed salary structure of each class of workers.

Date of Notification: 27th September, 2024

Applicability: 1st October, 2024

Source: https://labour.ap.gov.in/

What is the Salary Structure for Minimum Wage Workers in Andhra Pradesh?

Andhra Pradesh is a vast state, and having a common salary structure for both urban and rural populations does not make economic sense. This disparity makes it necessary to have different salary structures for workers who are making the minimum wage in Andhra Pradesh.

For example, a weighman or milk vendor in Zone I can at the least make ₹3,886 per month, but that same work in Zone II will make them ₹3,757 per month. This is because both zones have different living standards.

Final Words

The government of Andhra Pradesh has revised its minimum wage policy at least once a year. This makes sure that the workers in AP receive fair compensation. As employers, you should conduct your business in accordance with the rules and regulations of the Minimum Wages Act.

Both the central and state governments have approved the minimum wages in Andhra Pradesh. The end goal of these policies is to ensure that employees are treated well in the workplace. With proper compliance and correct compensation, you can avoid any penalties in Andhra Pradesh.