Sri Vijaya Puram | The Wave Andaman: In the Andaman & Nicobar Islands, the Minimum Wages Act, 1948, governs the statutory wage framework for workers in scheduled sectors. The Directorate of Labour, under the Andaman & Nicobar Administration, publishes updated minimum wage rates twice a year, typically effective from January 1 and July 1. These revisions apply uniformly across South Andaman, North & Middle Andaman, and Nicobar districts.
As per the most recent official notification effective July 1, 2024, daily minimum wages range from ₹628 for unskilled workers to ₹915 for highly skilled workers. Based on a 26-day working month, this translates to a monthly minimum wage of approximately ₹16,328 for highly skilled labour. These rates include cost-of-living adjustments specific to the islands and are applicable to six scheduled sectors including construction, hospitality, agriculture, domestic work, security services, tailoring, and transport.
Employers in these sectors are legally required to display wage boards at workplaces and maintain registers of wages, attendance, and overtime. They are also mandated to provide payslips and follow prescribed working hours, which include an eight-hour day, weekly rest, and overtime pay.
While these legal provisions are well-defined, enforcement on the ground remains inconsistent. Several reports from workers across sectors such as domestic services, hospitality, and construction suggest that many are paid below the notified minimum wage. Monthly wages of ₹8,000-₹10,000 are reportedly common in informal sectors, often without overtime or weekly leave.
Labour Department inspections are largely complaint-based, and regular surprise checks are infrequent. The department has limited personnel, making widespread and consistent enforcement challenging. Many small-scale or household employers are not registered, further complicating oversight. Although workers can file complaints at the Labour Department or submit written petitions, fear of reprisal or job loss often discourages them from doing so.
According to the department’s citizen charter, complaints related to minimum wage underpayment are expected to be resolved within 15 working days. While forms for wage claims and underpayment grievances are available, there is currently no dedicated digital grievance portal or helpline specific to wage-related violations, which affects accessibility for vulnerable workers.
The Minimum Wages Advisory Committee, reconstituted in 2023, includes representatives from trade unions, employers, and civil society to advise the administration on wage revisions. However, its role is advisory in nature and does not extend to monitoring enforcement or addressing individual violations.
The Code on Wages, 2019, which aims to consolidate and modernize wage-related laws across the country, has not yet been formally implemented in the Andaman & Nicobar Islands. There is no public notification or official circular confirming its operational status in the Union Territory. As a result, the islands continue to function under the earlier framework, with enforcement relying on older processes and manual inspections.
While the legal system governing minimum wages in the islands is clear and regularly updated, its effectiveness depends heavily on on-ground enforcement, worker awareness, and institutional capacity. The existing framework offers protection on paper, but its impact remains uneven across sectors. The gap between notification and compliance continues to affect many informal and low-income workers, raising questions about how well the system serves its intended purpose.
