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Minimum wages in Andaman and Nicobar 2025: Rules & salary structure
To protect the rights of workers and employees, the Minimum Wages Act, 1948 lays down the foundation for fair compensation across India, including Andaman and Nicobar Islands. The Government of India revises minimum wage rates twice a year—in January and July—based on the Variable Dearness Allowance (VDA). The law ensures that employers pay at least the prescribed minimum wage for the type of work performed, irrespective of gender.
As we go through the latest minimum wage structure in Andaman and Nicobar, you'll see how these regulations support fair pay and help create a more just work environment.
Minimum wages in Andaman and Nicobar
The Minimum Wages Act, 1948 is designed to prevent exploitation by ensuring that every worker receives fair wages for their work. It empowers both the Central and State Governments (including Union Territories like Andaman and Nicobar) to fix and revise minimum wages based on skill levels and types of employment.
In Andaman and Nicobar, the most latest minimum wage update came into effect on 12th July 2024, establishing revised wage rates across all districts.
Key rules for minimum wages in Andaman and Nicobar
- The minimum wages apply equally across South Andaman, North & Middle Andaman, and Nicobar districts.
- Uniform wage rates are applicable across the following six categories of scheduled employment:
- Shops, commercial establishments, residential hotels, restaurants, lodging houses, eating houses, theatres, and places of public amusement or entertainment.
- Wood-based industries
- Educational institutions (including schools, nurseries, tutorials, and coaching centres, excluding CBSE-affiliated schools)
- Agriculture
- Construction, stone breaking or crushing, road maintenance, and building operations
- Loading and unloading work
- Minimum wages are revised twice a year, in January and July, based on the Variable Dearness Allowance.
- VDA is adjusted at ₹1 per point increase or decrease in the All India Consumer Price Index (AICPI).
- It is implemented in two cycles: Between April to September (based on AICPI orders issued in January) and between October to March (based on AICPI orders issued in July).
This structure ensures wages keep pace with inflation and changes in the cost of living, thereby protecting employees’ real income.
How is the minimum wage calculated in Andaman and Nicobar
The minimum wage in India varies based on several factors, such as the state, the specific region within the state (rural or urban), the industry, the type of occupation, and the skill level of the worker.
As of now, the national floor-level minimum wage is approximately ₹178 per day, which comes to around ₹5,340 per month. However, this is only a benchmark; actual minimum wages for different workers are notified by individual states and Union Territories.
Categories of workers in Andaman and Nicobar
- Unskilled workers
Unskilled workers do not require formal education or specialised training. Their jobs often involve manual labour and physical effort. Examples include farm workers, parking attendants, and warehouse labourers.
- Semi-skilled workers
Semi-skilled workers have some training or experience but do not possess advanced or technical skills. They typically perform repetitive tasks with limited supervision. Examples include retail salespersons, bartenders, and machine operators
- Skilled workers
Skilled workers have undergone training or acquired specific skills needed for a particular job or trade. These individuals may hold certifications or have hands-on experience. Examples include electricians, carpenters, and law enforcement personnel.
- Highly-skilled workers
Highly-skilled workers have advanced education and training, often in specialised fields. Their roles typically involve decision-making, expertise, and professional judgment. Examples include doctors, engineers, and software developers.
Minimum wages in Andaman and Nicobar 2025
The Andaman and Nicobar Administration has revised the minimum wage rates across various employment categories, effective from January 1, 2025. These rates are applicable to all offices and sectors covered under the Minimum Wages Act, 1948.
| Category of employees | Minimum wage per day | Minimum wage per month |
| Unskilled | ₹641 | ₹16,666 |
| Semi-skilled/Unskilled supervisory | ₹722 | ₹18,772 |
| Skilled/Clerical | ₹845 | ₹21,970 |
| Highly skilled | ₹928 | ₹24,128 |
Salary structure for different skill level labour in Andaman and Nicobar
Here are simple salary structures for each category based on the revised minimum wages. These are designed to help you structure your employee’s monthly pay while complying with minimum wage norm
| Salary structure for unskilled employees | |
| Component | Monthly amount |
| Basic salary | ₹10,000 |
| Dearness Allowance | ₹2,000 |
| House Rent Allowance | ₹4,666 |
| Total gross salary | ₹16,666 |
| Salary structure for semi-skilled/unskilled supervisory employees | |
| Component | Monthly amount |
| Basic salary | ₹12,000 |
| Dearness Allowance | ₹2,106 |
| House Rent Allowance | ₹4,666 |
| Total gross salary | ₹18,772 |
| Salary structure for skilled/clerical employees | |
| Component | Monthly amount |
| Basic salary | ₹14,000 |
| Dearness Allowance | ₹2,106 |
| House Rent Allowance | ₹5,864 |
| Total gross salary | ₹21,970 |
- These structures are indicative and based on the principle that basic salary should be at least 50% of the CTC to comply with current Indian wage code norms.
- You can add allowances like conveyance allowance or medical allowance if needed, as long as the total monthly pay meets or exceeds the prescribed minimum.
Employer responsibilities under the minimum wages rules
As per the Minimum Wages Rules in Andaman and Nicobar, employers must:
- Ensure a uniform minimum wage rate across all districts within the Union Territory for similar categories of work.
- Include one weekly day of rest while calculating monthly wages.
- Provide equal minimum wages to men and women for the same type of work, ensuring gender pay equality.
For more details on minimum wages in Andaman and Nicobar, refer to the PDF below:
Key takeaways
Minimum wages in Andaman and Nicobar are structured based on employee skill levels - unskilled, semi-skilled, skilled, and highly skilled.
As an employer, it’s important to comply with these rules to avoid legal penalties. By paying the correct minimum wages, you support employee rights and contribute to a fair and lawful workplace
Frequently asked questions
Is the monthly wage calculated for 30 days or 26 days in India?
Monthly wages in India are typically calculated by dividing the gross monthly salary by 30 days. This includes paid weekly rest days, which is why 30 days is used instead of 26.
Who is eligible to claim minimum wages?
Any employee working in a scheduled employment, whether in an unskilled, semi-skilled, skilled, or highly skilled role, is entitled to receive minimum wages as notified by the government.