Minimum Wages Rates and Rules in Arunachal Pradesh

State laws3 mins read15 views | Posted on May 9, 2025 | By Team Zoho Payroll

The Minimum Wages Act, 1948 empowers state governments to fix fair wages for workers in different sectors. In Arunachal Pradesh, the government sets these wages based on local economic conditions and cost of living standards. This article provides a clear overview of the current wage structure and applicable rules in Arunachal Pradesh, designed to promote fair labour practices and protect workers’ rights.

Minimum wages in Arunachal Pradesh

Minimum wages in the state are governed by Section 6 of the Arunachal Pradesh Minimum Wages Rules, 1993. The government classifies the state into two geographical categories: Area I and Area II to determine wage rates.

  • Area I: Receives a lower special compensatory allowance
  • Area II: Receives a higher allowance, reflecting the varying economic conditions across the state

In addition to the above classification, the state also fixes minimum wages based on the skill level of workers - Unskilled, semi-skilled, and skilled.

To ensure fair classification, the Arunachal Pradesh Government sets up a technical committee that advises on skill categorization. The committee typically includes representatives from the Labour and Employment departments and wage determination experts nominated by the state government.

How is the minimum wage calculated in Arunachal Pradesh

Minimum wages in the state are calculated based on several factors including the region, the skill level of workers, and the industry. To determine the final rate, the state government also takes into account the following criteria:

  • A standard working-class family consisting of the earning member, spouse, and two children - equivalent to three adult consumption units
  • A minimum daily calorie intake of 2,700 calories per consumption unit
  • Annual requirement of 66 metres of cloth per family
  • House rent allowance equal to 10% of food and clothing expenditure
  • Fuel, electricity, and other miscellaneous expenses constituting 20% of the minimum wage
  • Children’s education, medical expenses, recreation, and emergency needs accounting for 25% of the minimum wage

Latest minimum wages in Arunachal Pradesh

Category of workerArea-IArea-II
Daily rateMonthly rateDaily rateMonthly rate
Unskilled₹200₹6,000₹220₹6,600
Semi-skilled₹210₹6,300₹230₹6,900
Skilled₹220₹6,600₹240₹7,200

These rates are based on the most recent official notifications from the Arunachal Pradesh Labour Department.

View the official notification here

Salary structure for minimum wage workers in Arunachal Pradesh

Here’s a sample salary structure for different categories of employees in Arunachal Pradesh based on the minimum wage rates. These structures are ideal for small businesses that want to ensure compliance while keeping things straightforward.

Salary structure for unskilled employees - Area II
ComponentMonthly amount
Basic salary₹3,960
Dearness Allowance₹1,000
House Rent Allowance₹1,640
Total gross salary₹6,600
Salary structure for semi-skilled worker - Area II
ComponentMonthly amount
Basic salary₹4,000
Dearness Allowance₹1,200
House Rent Allowance₹1,700
Total gross salary₹6,900
Salary structure for skilled worker - Area II
ComponentMonthly amount
Basic salary₹4,100
Dearness Allowance₹1,300
House Rent Allowance₹1,800
Total gross salary₹7,200

Note: These are indicative structures based on the gross minimum wage. You can optionally add components like PF,ESI, or bonus, if they apply to your organisation.

Guidelines from Arunachal Pradesh Minimum Wages Rules

  1. Minimum wages must be revised twice a year, once on April 1st and again on October 1st, at six-month intervals. These revisions should take into account the cost of living and the cash value of essential commodities.
  2. The standard number of working hours per day is eight, with one or more rest intervals that must not exceed one hour in total. However, the state government may prescribe different rules for the agricultural sector.
  3. For employees working in shifts, they must be granted a weekly rest period of 24 consecutive hours. This day of rest should ordinarily be a Sunday.

Key takeaways

Minimum wages in Arunachal Pradesh vary based on industry, occupation, skill level, and geographic location. The state is divided into two regions, Area I and Area II, with distinct minimum wage rates for different skill sets. Employers must adhere to these regional wage differences to ensure fair compensation for workers across the state.

Frequently asked questions

What is the current Dearness Allowance rate under minimum wages in Arunachal Pradesh?

As of May 5, 2025, the Government of Arunachal Pradesh has announced a 2% increase in Dearness Allowance and Dearness Relief, raising the rate from 53% to 55% of the basic pay and pension, effective from January 1, 2025.

How are minimum wage rates calculated?

The minimum wage in a state is determined by factors such as the standard of living of workers, working conditions, cost of living, and the nature and complexity of the work.

Reference

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