ILO welcomes Telangana's first full wage revision since 2014

The reform is expected to benefit more than 9.2 million wage workers, covering nearly 48 per cent of total employment in the state.

The International Labour Organization has welcomed Telangana's first comprehensive minimum wage revision since the state was formed in 2014, calling it an important step for decent work, fair pay, and social justice.

The revised wage structure was announced by the Government of Telangana on May 21, 2026, and came into effect on June 1, 2026. Under the new system, monthly minimum wages will range from around Rs 14,000 to Rs 20,000, depending on the worker's skill level and employment location.

The reform is expected to benefit more than 9.2 million wage workers, covering nearly 48 per cent of total employment in the state. For many low-paid workers and their families, the change could bring stronger income security, better wage progression, and improved living standards at a time when household costs remain a major pressure.

Simpler structure aims to improve implementation

One of the biggest changes is the simplification of Telangana's minimum wage system. Earlier, the state had 1,548 different wage rates across occupations, scheduled employments, skill groups, and zones. The new model reduces this to a maximum of 12 rates, based on four skill categories: unskilled, semi-skilled, skilled, and highly skilled workers. These rates are also linked to three geographical zones. This simpler structure is expected to make the system easier for employers to understand and easier for authorities to monitor. It may also help workers know what they are legally entitled to receive, reducing confusion and improving compliance.

The reform follows the Code on Wages, 2019, and places Telangana among the early states showing how wage-setting can be based on research, consultation, and labour market evidence.

Social dialogue shaped the wage reform

The wage revision followed a detailed consultation process led by the Labour Department, Government of Telangana, and the Telangana Minimum Wage Advisory Board, which was set up for the first time to recommend new wage levels.

The ILO supported the process through research, capacity building, and participation in Advisory Board meetings as a special invitee. A state-wide consultation workshop held in Hyderabad in January 2025 brought together employers, workers, government representatives, and other stakeholders to discuss a scientific approach to wage fixation.

Michiko Miyamoto, Director of the ILO Office for India, said the reform shows the value of evidence-based policymaking and social dialogue. She noted that the process considered both workers' needs and wider economic factors, while supporting wage protection, gender equality, and inclusive growth.

The review looked at living costs, economic conditions, labour productivity, industrial competitiveness, and employment generation. Harichandana Dasari, Principal Secretary of the Labour, Employment Training and Factories Department, said the revision reflects the Government's commitment to wage policies that respond to changing economic realities and the needs of working families.

The reform is also expected to help reduce wage gaps, especially for women, who are often concentrated in lower-paid jobs and sectors. As other Indian states continue implementing the Code on Wages, Telangana's experience may offer a practical model for transparent and balanced wage reform.