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Latest Minimum Wages in Andhra Pradesh (2025 - 2026)
The Andhra Pradesh state government has revised the minimum wages for 2025, specifying the minimum compensation that employers must provide based on workers’ skill levels. These updates apply to various worker categories - unskilled, semi-skilled, skilled, and highly skilled and are organized across three zones: Zone I, Zone II, and Zone III, each with different wage rates.
This article offers a clear overview of the revised minimum wages in Andhra Pradesh and breaks down the salary structure for different classes of workers, helping employers stay compliant with the latest rules.
How is the minimum wage calculated in Andhra Pradesh
From small businesses to large corporations, all employers are required to pay minimum wages that include a Variable Dearness Allowance (VDA). The VDA adjusts wages based on inflation, as reflected in the Consumer Price Index (CPI). In some cases, the minimum wage also includes a House Rent Allowance (HRA) component.
The total minimum wage is determined by:
- The worker’s skill level
- The nature of their job
- The zone in which the employment falls
Classification based on worker's skill level
In India, workers are typically classified into the following categories:
- Unskilled worker
Unskilled workers perform simple, routine tasks that require minimal training or experience. They may need some familiarity with the workplace but are not expected to apply judgment or operate specialized tools. Tasks may involve physical labor or handling of goods and materials.
- Semi-skilled worker
Semi-skilled workers carry out tasks that require following set instructions and procedures. They may operate machinery or tools but are not responsible for complex decision-making. Their work involves limited judgment and is generally confined to specific, repetitive operations.
- Skilled worker
A skilled worker performs tasks that require technical knowledge, training, or experience. They may independently carry out operations, interpret instructions, and ensure quality in their work. Skilled workers often operate complex machinery or tools with precision.
- Highly skilled worker
Highly skilled workers are experts in their trade or profession. They are expected to perform complex tasks efficiently and may also supervise or guide other skilled workers. Their role involves judgment, leadership, and accountability in specialized functions.
Different wage zones in Andhra Pradesh
To account for regional differences in cost of living and industrial development, the Andhra Pradesh government has divided the state into three zones for minimum wage purposes:
- Zone I typically includes major cities and industrial hubs where the cost of living is higher. This zone usually has the highest minimum wage rates.
- Zone II covers semi-urban areas and towns with moderate industrial activity and living costs.
- Zone III includes rural and less developed regions with lower living expenses and limited industrialization.
Each zone has a distinct minimum wage structure to ensure fair compensation relative to local economic conditions. Employers must refer to the correct zone classification when determining wages for their workers.
Andhra Pradesh minimum wages for 2025
The table below lists the monthly minimum wage and basic pay for employees working in shops and establishments across different zones in Andhra Pradesh.
| Class of employment | Zone | Basic pay per month (in ₹) | VDA per month (in ₹) | Total minimum wages (in ₹) |
| Manager, field officer, development officer, office incharge, and computer programmer | Zone I | 5,557 | 8,710 | 14,267 |
| Zone II | 5,138 | 8,710 | 13,848 | |
| Accountant, assistant manager, sales executive, supervisor, purchaser, store keeper, agent, sales promotion employees | Zone I | 4,722 | 8,710 | 13,432 |
| Zone II | 4,520 | 8,710 | 13,230 | |
| Salesman, stenographer, receptionist, auction bidder, typewriter instructor, electrician, radio and optical mechanic, photographer, mechanic, plumber, mason | Zone I | 4,520 | 8,710 | 13,230 |
| Zone II | 4,302 | 8,710 | 13,012 | |
| Clerk, godown incharge, lineman, assistant salesman, assistant accountant, xerox machine operator | Zone I | 4,102 | 8,710 | 12,812 |
| Zone II | 3,886 | 8,710 | 12,596 | |
| Weighman, kolgari, computer operator | Zone I | 3,886 | 8,710 | 12,596 |
| Zone II | 3,757 | 8,710 | 12,467 | |
| Peon, attender, watchman, water boy, helper, messenger | Zone I | 3,700 | 8,710 | 1,2410 |
| Zone II | 3,370 | 8,710 | 1,2080 |
To learn more about employee minimum wages pertaining to your business, refer to the official notification here:
Salary structure for minimum wage workers in Andhra Pradesh
To help you understand how to structure employee salaries, here’s sample salary breakdown for managerial and sales roles based on the latest 2025 minimum wage rates.
Salary structure for managerial employee - Zone I | |
| Component | Monthly amount |
| Basic salary | ₹ 5,557 |
| Dearness Allowance | ₹ 8,710 |
| House Rent Allowance (approx. 50% of basic salary) | ₹ 2,778 |
| Total gross salary | ₹ 17,045 |
While the minimum wage is ₹14,267 for managers in Zone I, including HRA and other salary components help businesses offer a more competitive and compliant salary structure.
Salary structure for sales employee - Zone II | |
| Component | Monthly amount |
| Basic salary | ₹ 4,302 |
| Dearness Allowance | ₹ 8,710 |
| House Rent Allowance (approx. 50% of basic salary) | ₹ 2,151 |
| Total gross salary | ₹ 15,163 |
Employers can include additional allowances like conveyance, performance bonuses, or PF contributions, depending on company policy. However, the basic salary + DA must not fall below the minimum wage notified by the government.
Employer responsibilities under the AP minimum wages rules
Under the Andhra Pradesh Minimum Wages Rules, employers must follow fair wage practices and comply with key labor standards, including:
- Paying employees their wages on or before the 7th of every month, without any undue delays.
- Maintaining accurate records of employee working hours, wages, and other relevant employment details.
- Informing employees about the current minimum wage rates and any wage-related changes.
- Making only lawful deductions from employee wages, such as contributions to the provident fund or applicable taxes, with proper documentation.
Frequently asked questions
What is the current minimum wage for unskilled labour working in factories in Andhra Pradesh?
As of April 1, 2025, the minimum monthly wages for unskilled labourers working in factories in the state is ₹12,939.
This rate is determined by the state government and is subject to change.
What are Zone I, II, and III in the context of minimum wages in Andhra Pradesh?
Andhra Pradesh is divided into three zones for the purpose of determining minimum wages:
Zone I: Includes areas under municipal corporations and special-grade municipalities.
Zone II: Encompasses selection-grade municipalities and other specified urban areas.
Zone III: Covers all remaining areas within the state, typically rural regions.
This classification helps tailor wage structures to the cost of living and economic conditions of different regions.
Why is the VDA the same across all zones, even though basic pay differs?
The VDA is linked to the Consumer Price Index and is revised by the government to account for inflation. Since inflation affects everyone uniformly, the VDA remains the same across all zones. However, basic pay varies depending on the zone and the nature of the job, which is why total minimum wages differ between Zone I, II, and III.