Section 9 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 9 of the Code on Wages, 2019 introduces the floor wage, a base level fixed by the Central Government below which no appropriate Government may set its minimum rates. It also protects higher rates already in place: an existing minimum above the floor cannot be reduced to it.
The Central Government fixes the floor wage, taking into account the minimum living standards of a worker, in the manner prescribed, and may fix different floor wages for different geographical areas (s.9(1)). Minimum rates fixed by the appropriate Government under s.6 shall not be less than the floor wage, and a higher rate fixed earlier shall not be reduced (s.9(2)). Before fixing, the Centre may obtain the advice of the Central Advisory Board and consult State Governments (s.9(3)). The Code does not state the floor wage amount; it is notified.
Sub-sections at a glance
| Sub-section | Rule |
|---|---|
| s.9(1) | Central Government fixes floor wage, taking into account minimum living standards of a worker, in the prescribed manner. Proviso: different floor wage may be fixed for different geographical areas |
| s.9(2) | Minimum rates fixed under s.6 shall not be less than the floor wage; an earlier higher minimum shall not be reduced |
| s.9(3) | Before fixing, the Centre may obtain advice of the Central Advisory Board (s.42(1)) and consult State Governments in the prescribed manner |
Section 9(1): who fixes it and on what basis
The floor wage is fixed by the Central Government alone. This is unlike the minimum wage in s.6, which the appropriate Government (Central or State) fixes. The basis is the minimum living standards of a worker. The text does not give a formula.
The proviso lets the Centre fix different floor wages for different geographical areas. Under rule 2(1)(l) of the Central Rules, "geographical area" means areas notified by the Central Government from time to time. The Code does not say how many areas or what they are; that is for the notification.
The Code gives no amount and neither does this article. Check the Central Government's notification for the current floor wage for your area.
Section 9(2): the floor works both ways
Two limbs.
- No minimum rate below the floor. The minimum rates fixed by the appropriate Government under s.6 shall not be less than the floor wage.
- No reduction of a higher rate. If the minimum rates fixed earlier are more than the floor wage, the appropriate Government shall not reduce them.
Illustration only (hypothetical figures). Suppose the Centre fixed a floor wage of Rs 300 a day for an area. State A's existing notified minimum is Rs 420 for a category. State A cannot lower it to Rs 300. State B's existing rate is Rs 280. State B must raise its rate to at least Rs 300 when it fixes or revises, because a minimum rate below the floor is not allowed. These numbers are invented to show the rule.
This means that for employers the minimum wage notification of the appropriate Government remains the figure to pay, and it can never be below the floor. If you pay according to a State notification, you should expect upward revision when the floor rises. See section 6 for how the appropriate Government fixes its rates and section 5 for the duty to pay.
Because the floor interacts with State rates in so many establishments, employers with units in several States should have the rates compared in one place. Our payroll compliance audit service can map your units to the State and floor rates and flag where a revision will matter.
Section 9(3): advice and consultation
Before fixing the floor wage the Central Government may obtain the advice of the Central Advisory Board constituted under s.42(1) and consult State Governments in the manner prescribed. The word "may" makes both steps optional in the Code text. See section 42.
What the Central Rules add: rule 10
Rule 10 of the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026) sets the manner of fixing the floor wage. These rules are made by the Central Government and the floor wage is fixed by the Central Government, so they apply directly to the floor wage. Where the State Government is the appropriate Government for the minimum wage, the State's own wage rules apply to that.
| Rule | Text in brief |
|---|---|
| 10(1) | The Central Government may consult the Board, taking into account the minimum living standard including the food, clothing, housing and any other factors it considers appropriate from time to time |
| 10(2) | The consultation may be circulated to all State Governments for further consultation and their comments |
| 10(3) | The consultation of the Board and the views of the State Governments received may be considered before fixing the floor wage |
| 10(4) | The Central Government may revise the floor wage ordinarily at an interval not exceeding five years and undertake adjustment for variations in the cost of living periodically, in consultation with the Board and the State Governments |
Rule 10(1) names food, clothing and housing as parts of the minimum living standard, and leaves room for other factors. Rule 10(4) gives the five-year review for the floor wage and adds periodic cost-of-living adjustment. See Rule 10.
Floor wage versus minimum wage
| Feature | Floor wage (s.9) | Minimum wage (s.6) |
|---|---|---|
| Fixed by | Central Government only | Appropriate Government (Central or State) |
| Basis | Minimum living standards of a worker | Skill, area, arduousness (s.6(6)) |
| Area variation | Different floor wages for different geographical areas allowed | Fixed by category and area |
| Relation | A base level | Cannot be below the floor; an earlier higher rate cannot be cut |
The Code does not say that an employer pays the floor wage directly; the employer's duty in s.5 is to pay the minimum rate notified by the appropriate Government, which s.9(2) keeps at or above the floor. For the old-law background and state comparison, see Central minimum wages versus State minimum wages.
Need help comparing your rates to the floor?
If your State rates are close to the Central floor, a revision can change your payroll cost quickly. Our payroll compliance audit team can compare your pay structures with the notified rates and the floor wage for each location.
Key takeaways
- The Central Government fixes the floor wage, based on a worker's minimum living standards, and may set different floor wages for different areas.
- Minimum rates fixed by the appropriate Government cannot be less than the floor wage.
- An earlier higher minimum rate cannot be reduced to the floor.
- Before fixing, the Centre may obtain advice from the Central Advisory Board and consult State Governments.
- Rule 10 adds the manner of consultation and a five-year review with periodic cost-of-living adjustment.
Read next
- Rule 10 of the Central Rules: manner of fixing floor wage
- Section 8: procedure for fixing and revising minimum wages
- Section 10 to 12: short working day, two classes of work and piece work
- Central minimum wages versus State minimum wages
Disclaimer: Based on the Code on Wages, 2019 (as enacted) and, where noted, the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026), as on 1 October 2026. The Code is in force from 21 November 2025; State Governments make their own rules for establishments where the State is the appropriate Government, and wage rates are notified separately. Verify the current position before acting.