COMPARATIVE STUDY OF IMPLEMENTATION OF MINIMUM WAGES LAWS IN INDIA AND U.S.A

AUTHOR – MEERAA SHANKARI G, STUDENT AT SCHOOL OF EXCELLENCE IN LAW THE TAMILNADU DR AMBEDKAR LAW UNIVERSIY, CHENNAI

BEST CITATION – MEERAA SHANKARI G, COMPARATIVE STUDY OF IMPLEMENTATION OF MINIMUM WAGES LAWS IN INDIA AND U.S.A, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (5) OF 2026, PG. 464-479, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT:

“A job should lift workers out of poverty, not keep them in it.”

-Bernie Sanders

              Minimum wage laws constitute a foundational element of labour welfare policy, aimed at ensuring fair remuneration and protecting workers from exploitation. In India, the significance of minimum wage regulation is amplified by the predominance of the informal sector, regional economic disparities, and varying levels of enforcement. This paper examines the evolution, framework, and impact of minimum wage laws, particularly under the Minimum Wages Act, 1948, and its transition into the contemporary wage regime.

The study critically analyses the role of minimum wage legislation in addressing poverty, reducing income inequality, and influencing employment patterns. It further explores the challenges associated with implementation, including lack of uniformity across states, weak enforcement mechanisms, and the persistence of informal employment relationships. The research also considers recent reforms, such as the consolidation of wage-related laws under the Code on Wages, 2019, and evaluates their potential to streamline wage determination and improve compliance.

KEYWORDS: Minimum Wage, Labour, Informality, Inequality, Poverty, Employment, Regulation, Enforcement, Justice, Equity, Governance, Compliance.