Governance
Floor Wage
A national minimum wage baseline fixed by the Central Government, below which no state government can set minimum wages.
Definition
The 'floor wage' is a concept introduced by the Code on Wages, 2019, where the Central Government shall fix a national minimum wage, taking into account the minimum living standards of a worker. Different floor wages may be fixed for different geographical areas. State governments are mandated to ensure that the minimum wages they fix are not less than this national floor wage.