Nearly 25 per cent of India’s casual workforce is earning below the legally mandated minimum wage, according to a research report by State Bank of India based on the latest Periodic Labour Force Survey (PLFS) 2025 data.
The report highlighted sharp interstate disparities in minimum wage compliance, with eastern states emerging as the biggest violators of labour norms. Chhattisgarh recorded the highest level of non-compliance, where nearly 70 per cent of casual workers earned less than the statutory minimum wage. Odisha followed with 66 per cent, while Jharkhand stood at 65 per cent.
The findings suggest that a majority of casual labourers in these states continue to work without adequate wage protection guaranteed under labour laws. Overall, the report estimated that nearly one-fourth of casual workers across India are not receiving wages in line with legal standards.
“Substantial interstate disparities are observed in minimum wage compliance among casual workers,” the research report noted.
Punjab, Maharashtra Also Lag
Apart from the eastern belt, several economically significant states also showed high levels of wage violations. In Punjab, nearly 37.19 per cent of casual workers were paid below the prescribed minimum wage.
Industrial and agricultural hubs such as Maharashtra and West Bengal also struggled with enforcement, with nearly one-third of casual labourers receiving wages lower than the mandated rates.
South Shows Better Compliance
Southern states, however, reported far stronger implementation of minimum wage laws. Tamil Nadu recorded a non-compliance rate of only 4.58 per cent, while Telangana stood at just 0.36 per cent. Andhra Pradesh emerged as the best-performing state with no reported violations among casual workers.
“States need to strictly implement the Minimum Wages Act,” the study emphasised.
Women Face Greater Exploitation
The report also underlined a major gender imbalance in wage inequality. Women accounted for 45 per cent of all underpaid casual workers despite representing only 25 per cent of the total casual workforce.
In comparison, men make up nearly 75 per cent of the casual workforce but accounted for 55 per cent of workers earning below the minimum wage.
The data suggested that women working in India’s informal and casual labour sectors remain significantly more vulnerable to wage exploitation than their male counterparts. |
