Minimum Wages in Tamil Nadu

1. Minimum Wages
2. Minimum Wages in Tamil Nadu

Download Minimum Wages in Tamil Nadu Official Notification PDF

Various industries flourish in Tamil Nadu, such as automobiles, manufacturing, and textiles. As economic growth is currently on an all-time rise in the agritech and electrical industries, there is a constant surge in employment opportunities. On the other hand, due to the availability of cheap labor, it is very easy to exploit workers. Low wages are among the most common issues for workers in Tamil Nadu.

This has led the state government of Tamil Nadu to update the minimum wage policy every year. This revision ensures that laborers working in various sectors receive fair wages. The minimum wages are released on the government’s official website every year.

What is the Minimum Wages in Tamil Nadu

Minimum wages are the lowest compensation given by the employers to their workers. The wages must be paid to laborers as it is mandated by law. These wages are designed to protect workers from any kind of unduly low payments to maintain a basic standard of living for them and their families. The Tamil Nadu government sets and releases minimum wages every year. This is done under the Minimum Wages Act 1948.

The central and state governments set minimum wages for scheduled employment. The scheduled employment covers a range of industries and various occupations. There are various factors taken into account when calculating the minimum wage. These wages are calculated for various work zones, i.e., Zone A, B, C, and D.

The calculations are also based on the prevailing Consumer Price Index (CPI) and Dearness Allowance (DA). The last effective date until further revision for the minimum wages in Tamil Nadu was September 11, 2024. You can stay updated through their official website and notifications.

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: October 23, 2024

Applicability: October 23, 2024

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)

Wrapping up

The revision of Tamil Nadu’s minimum wages is designed to guarantee reasonable compensation to the state’s workers. Both employers and employees should understand these rules and regulations. The Minimum Wages Act provides a legal framework for setting and revising the minimum wages in the state.

In calculating minimum wages for Tamil Nadu, VDA is also included to protect workers from the effect of price rises. Note that it is necessary to stay updated and refer to the official websites for the most recent information.