Minimum Wages in Bihar

1. Minimum Wages
2. Minimum Wages in Bihar

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The recent efforts of the Bihar government have resulted in several key policies like IT policy and Special Industrial Zones. It is estimated that these policies would generate a lot of employment opportunities. Such opportunities make minimum wages in Bihar even more important.

A significant population of Bihar is laborers in other states. These laborers might return back to Bihar and contribute to its growth due to fair compensation. At the same time, employers will have to adhere to legal obligations related to minimum wage rates in Bihar.

The Bihar government’s latest minimum wage notification makes the new rates effective from 1st April, 2025. To understand and calculate the new labor rates, you need to understand the basics of minimum wages in Bihar.

What is the Minimum Wages in Bihar

Minimum wage refers to the lowest amount of salary that an employer needs to pay to an employee. In India, these minimum wages are governed by the Minimum Wages Act (1948) This act provides regulatory powers to all the states in India.

So, the Bihar government passed the Bihar Minimum Wages Rules (1951). Under these rules, the state government revises the wage rates in Bihar, considering factors like current working conditions and inflation.

The wage rates apply to all the employees under scheduled employment.

Scheduled employments refer to those employments which are listed in the schedule to the Minimum Wages Act (1948)

Latest Minimum Wages in Bihar 2025

The Bihar Government has revised their wages for scheduled employment. The table mentioned below shows the current minimum wages in Bihar effective from 1st October 2024.

Date of Notification: 28 March, 2025

Date of Applicability: 1st April, 2025

You can calculate the total salary of your employees based on the above wage rates. You also need to consider the category of your employees for calculating their wages.

The Bihar government primarily classifies employees into five categories.

1. Highly skilled,

2. Skilled,

3. Semi-skilled,

4. Unskilled, and,

5. Supervisory/clerical.

Highly Skilled

Individuals with advanced technical and interpersonal skills are referred to as highly skilled workers. These professionals have expertise in their domain and can work independently. Highly skilled professionals can also supervise others.

Skilled Skilled Workers are those Individuals Who Possess Knowledge Related to Their Field. They Can Work Independently and with a Certain Degree of Independence. However, They have Less Autonomy in Decision-Making Compared to Highly Skilled Workers.

Semi-Skilled

A semi-skilled worker is an individual who performs work within a defined boundary or nature. Such individuals work more in operational capacity rather than administrative roles.

Unskilled

Unskilled workers mainly perform physical work. They require little or no experience. However, they need to be familiar with their occupation. Unskilled workers often deal with articles and goods.

Supervisory/Clerical

A supervisory worker manages and looks after the work of others. A clerical worker handles all the administrative tasks. Supervisors need leadership skills and experience for their tasks. A clerical worker needs organizational and communication skills.

Conclusion

Like many other states, the Bihar government also drafted rules on minimum wages under the Code of Wages 2020. Currently, only scheduled employment is part of the minimum wage. However, once the rules are implemented minimum wage rates would be universally applicable to all the employees.

Combined with the recent policy initiatives such as Bihar Investment Promotion, such rules would ensure that employees are paid fairly. From the employer’s perspective, compliance is becoming ever more important. Particularly, Bihar could introduce digitization of payslips and reports as done by many other states. So, knowing minimum wages in Bihar is important for employers as well as employees.