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Minimum Wages

Minimum Wages: how they are set and who they cover

Minimum wage is the lowest pay an employer can legally pay for work. Rates are set by governments and vary by country, region, skill level and industry. Here is how minimum wages work and where to check yours.

Minimum wage basics

  • The legal floor for pay
  • Set by government, revised periodically
  • Varies by region, skill and sector
  • Enforced through labour law

What is a minimum wage?

A minimum wage is the lowest hourly, daily or monthly pay that an employer is legally allowed to pay a worker for their work. It is set by law to protect workers from unduly low pay, and employers who pay below it can face penalties.

Minimum wages are set and revised by governments, so the current rate depends on your country and often on your region, your skill category and the industry you work in.

How minimum wages differ

In the United States, there is a federal minimum wage, and many states and cities set higher local minimums that apply instead. In the United Kingdom, the National Minimum Wage and National Living Wage are set by age band and revised each year. In India, minimum wages are set by both central and state governments and vary by state, skill level (unskilled, semi-skilled, skilled) and scheduled employment.

Because rates change and vary locally, always check the current figure for your exact location and job category from the official source before relying on it.

  • United States: a federal floor, with higher state and city rates
  • United Kingdom: age-banded National Minimum and Living Wage, revised yearly
  • India: central and state rates by skill level and scheduled employment
  • Rates are revised regularly, so always check the current figure

Related free tools

Turn a wage into take-home pay with Take-home Salary Calculator, Cost to Company Calculator, Compliance Checklist.

Questions, answered

Frequently asked questions

What is the minimum wage?

The minimum wage is the lowest pay an employer can legally pay for work, set by government to protect workers. The exact amount depends on your country, and often your region, skill level and industry.

How is minimum wage set in India?

In India, minimum wages are set by both central and state governments under labour law. They vary by state, by skill category (unskilled, semi-skilled, skilled) and by the type of employment, and are revised periodically.

Does the minimum wage change?

Yes. Governments revise minimum wages periodically to reflect inflation and cost of living. Always check the latest official rate for your location and job type.

What happens if an employer pays below minimum wage?

Paying below the legal minimum wage is an offence under labour law and can lead to penalties, back-pay orders and other enforcement action against the employer.

Please note: Outputs are AI-generated and can contain errors. Use them as a starting point and check anything important before you act on it.

From wage to take-home in one step

Enter any gross wage into the Take-home Salary Calculator to see net pay, deductions and employer cost for your country.

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