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Chhattisgarh, Odisha, Jharkhand Lead in Minimum Wage Violations: SBI Report

A new SBI research report reveals that nearly one-fourth of India's casual workforce earns below the statutory minimum wage. Chhattisgarh, Odisha, and Jharkhand recorded the highest non-compliance, with over 65% of workers underpaid. Female workers are disproportionately affected, making up 45% of underpaid workers despite being only 25% of the workforce. In contrast, Tamil Nadu, Telangana, and Andhra Pradesh show near-perfect compliance with minimum wage laws.

Key Points: India's Worst States for Minimum Wage Compliance: SBI

  • Chhattisgarh, Odisha, Jharkhand top minimum wage violations
  • 25% of casual workers underpaid nationally
  • Female workers disproportionately affected
  • Tamil Nadu, Telangana, Andhra Pradesh show high compliance
2 min read

Chhattisgarh, Odisha and Jharkhand record highest minimum wage disparity in India: SBI Report

SBI report reveals Chhattisgarh, Odisha, Jharkhand have highest minimum wage violations. 25% of casual workers underpaid, with severe gender disparity.

"Substantial interstate disparities are observed in minimum wage compliance among casual workers - SBI Research Report"

New Delhi, May 9

Nearly one-fourth of India's casual workforce receives pay below the statutory minimum wage. A research report by the State Bank of India based on the latest Periodic Labour Force Survey 2025 data found massive gaps in how different regions handle wage regulation.

Chhattisgarh, Odisha, and Jharkhand emerged as the areas with the most frequent violations. In Chhattisgarh, roughly 70 per cent of casual workers earned less than the legal minimum, followed closely by Odisha at 66 per cent and Jharkhand at 65 per cent. The data suggested that in these specific regions, the majority of the casual labour force operated without the basic financial safeguards promised by the state.

As per the report, approximately 25 per cent of casual workers do not earn the legally mandated rates. This deficit in compensation points toward an environment where labour laws struggle to reach the most vulnerable segments of the economy.

"Substantial interstate disparities are observed in minimum wage compliance among casual workers," the research report noted.

While the situation remains critical in the eastern belt, other industrial and agricultural hubs also showed significant levels of non-compliance. In Punjab, approximately 37.19 per cent of the casual workforce earned below the threshold.

Major economic contributors like Maharashtra and West Bengal also struggled with enforcement, where nearly one-third (~33) of casual workers received wages that fell short of the mandated minimum.

Conversely, states like Tamil Nadu (4.58%) and Telangana (0.36%) showed much higher compliance with regard to minimum wage compliance for casual workforces. Andhra Pradesh stood out for having no recorded violations in this category.

"States need to strictly implement the Minimum Wages Act," the study emphasised.

A sharp gender disparity also existed within these figures. Female workers accounted for 45 per cent of all underpaid casual workers, even though they represent only 25 per cent of the total casual workforce.

In contrast, male workers made up 75 per cent of the workforce but accounted for 55 per cent of those earning below the minimum wage. This imbalance suggested that women in the casual sector are disproportionately vulnerable to wage exploitation.

- ANI

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Reader Comments

P
Priya S
Look at Telangana (0.36%) and Tamil Nadu (4.58%)—that's how it's done! But it's heartbreaking to see eastern states lagging so badly. The gender gap is even more worrying: women make up 25% of the casual workforce but 45% of the underpaid. We need strict minimum wage implementation, especially for our sisters in these regions.
V
Vikram M
I appreciate the data-driven approach, but let’s be honest—this isn't new. We've known for years that states like Chhattisgarh and Jharkhand have weak enforcement mechanisms. The real issue is political will and administrative corruption. Unless we empower local authorities and penalize employers who cheat workers, reports will just gather dust.
R
Rohit P
As someone from Odisha, this hits close to home. Our people work so hard in fields and construction, yet they're denied basic rights. 66% below minimum wage is unacceptable. We need campaigns by NGOs and activists to raise awareness and hold companies accountable. Jai Jagannath! 🙏
K
Kavya N
The bright spot is Andhra Pradesh with zero violations—proof that good governance is possible even in large states. But let's not ignore Punjab's 37% non-compliance or Maharashtra and West Bengal's 33%. This isn't just a "tribal state" problem; it's a national crisis. Our casual workers are the backbone of the economy, yet they're treated like they're disposable.
S
Sarah B
I'm from the US and work in development economics. This report shows a common problem in many developing nations

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