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Minimum Wages Lakshadweep

Minimum Wages in Lakshadweep

Minimum wages in Lakshadweep are fixed under the Minimum Wages Act, 1948 and notified by the Labour Department of the Union Territory of Lakshadweep Administration, headquartered at Kavaratti. Rates are notified per scheduled employment rather than as a single statewide schedule, and within each employment they are set against the four standard skill categories.

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The short answer Lakshadweep notifies minimum wages per scheduled employment – harbour works and related island employments among them – using the four standard skill categories of unskilled, semi-skilled, skilled and highly skilled, as defined in the Schedule to the Minimum Wages Act, 1948. Because the Union Territory publishes rates by employment rather than in one consolidated table, employers must identify the scheduled employment their establishment falls under before reading a rate. Current figures should be taken from the applicable notification of the Lakshadweep Administration.

How to Calculate Minimum Wages in Lakshadweep

Once the correct scheduled employment and skill category are identified, the notified figure is the wage floor. Where a rate is notified daily, the monthly equivalent is the daily figure multiplied by 26; where it is notified monthly, the daily figure is the monthly rate divided by 26. Overtime is paid at twice the ordinary rate of wages. Because Lakshadweep is a small Union Territory with a limited set of scheduled employments, the practical first step is confirming which schedule applies rather than which skill band does.

The mistake to avoid: assuming Kerala rates apply. Lakshadweep is administered from Kavaratti as a separate Union Territory with its own Labour Department and its own notifications. The islands sit off the Kerala coast and the administrative and commercial links run through Kochi, which makes it easy to import a Kerala rate card – and a Kerala notification has no application in Lakshadweep.

How to read the Lakshadweep schedule

Step 1 – identify the scheduled employment your establishment falls under
Step 2 – find the current notification for that employment
Step 3 – place each worker in one of the four skill categories
Step 4 – read the notified rate for that category
Step 5 – monthly = daily × 26  ·  overtime = ordinary hourly rate × 2

Skill-Wise Classification of Employees in Lakshadweep

Lakshadweep applies the four standard skill definitions set out under the Minimum Wages Act framework. These are the same definitions used across most Indian jurisdictions, and they turn on the degree of independent judgment the work requires rather than on qualifications held or job titles given.

UnskilledAn employee who performs simple duties requiring little or no independent judgment or previous experience, although familiarity with the occupational environment is necessary. The work may involve physical exertion and familiarity with a variety of articles or goods.
Semi-SkilledAn employee whose work is generally of a defined routine nature, where the main requirement is not judgment or skill, and where the important decisions are made by others. The work is limited to routine operations of limited scope.
SkilledAn employee capable of working efficiently, exercising considerable independent judgment and discharging duties with responsibility. Must possess a thorough and comprehensive knowledge of the trade, craft or industry in which employed.
Highly SkilledAn employee capable of working efficiently and of supervising efficiently the work of skilled employees. The category carries both technical depth and responsibility for others.

Act on this: record the skill category and the scheduled employment together against each worker. In a small territory with few establishments, an inspection is thorough rather than sampled, and a register that names the employment schedule alongside the category answers the first two questions before they are asked.

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Employer Compliance for Minimum Wages in Lakshadweep

Minimum wages in Lakshadweep apply to workers in the scheduled employments notified by the Union Territory Administration, and coverage does not depend on headcount. The territory comprises ten inhabited islands, with the administrative headquarters at Kavaratti, and the same notification applies across all of them. Contract workers are covered on the same footing as directly employed staff, and the principal employer carries the liability where a contractor underpays.

Records an inspection actually examines

  • Wage register showing the scheduled employment, skill category, rate, days worked, overtime and wages paid.
  • Register of workers recording the skill category against each name.
  • Wage slips issued each wage period, before or at the time of payment.
  • Attendance and overtime records, with overtime logged on the day it was worked.
  • Rate notice displayed at the workplace, refreshed after every revision.
  • A copy of the current notification for each scheduled employment the establishment operates under.

Penalty for Not Paying Minimum Wages in Lakshadweep

Paying below the notified rate exposes an employer to recovery of the shortfall for the whole affected period, compensation on top, and prosecution. Under the Code on Wages, 2019 a first offence attracts a fine of up to ₹50,000, and a repeat offence within five years can mean up to three months imprisonment and a fine of up to ₹1 lakh. Claims reach back three years.

Act on this: keep the applicable notification on file at each island establishment rather than centrally. Inter-island travel in Lakshadweep depends on shipping and weather, and producing a document held on another island is not a practical answer to an inspector standing in front of you.

How Minimum Wages in Lakshadweep Are Fixed and Revised

The Labour Department of the Lakshadweep Administration fixes and revises minimum wages under the Minimum Wages Act, 1948, notifying rates for each scheduled employment in the Union Territory. Revisions follow the same statutory framework applied nationally – the appropriate government reviews and revises rates at intervals not exceeding five years, with dearness allowance adjustments where the schedule provides for them. Because Lakshadweep publishes a comparatively small number of notifications, tracking them is manageable, but they are less widely republished than mainland state notifications.

Act on this: subscribe to or periodically check the Lakshadweep Administration’s official publications rather than relying on national compliance aggregators. Small Union Territories are the jurisdictions most often carried stale in third-party rate databases, sometimes by years.

Notification history for minimum wages in Lakshadweep.

Effective FromScheduled EmploymentSkill CategoriesRate
Notified scheduled employments in the UTUnskilled, Semi-Skilled, Skilled, Highly Skilled
Harbour works and allied employmentsUnskilled, Semi-Skilled, Skilled, Highly Skilled
Earlier revisions

Effective dates and rate figures are to be filled from the notifications of the Lakshadweep Administration. Because the Union Territory notifies per scheduled employment rather than in one consolidated schedule, verify the notification applicable to your establishment before finalizing payroll.

Minimum Wages in Lakshadweep vs Other States

Lakshadweep is the smallest jurisdiction in this comparison by workforce, and like other small Union Territories it notifies by scheduled employment rather than publishing a single consolidated schedule. For a mainland employer operating an island site, that means sourcing the specific notification rather than reading a rate off a state table.

Structure comparison. Rate figures are to be filled from each jurisdiction’s own notification.

State / BenchmarkUnskilled / DayStructure
Lakshadweep (UT)Notified per scheduled employment, four standard skill categories
Puducherry (UT)Consolidated monthly wage by designation, ~106 designations
Chandigarh (UT)₹560Consolidated monthly rate, nine categories, no zone split
KeralaBasic + DA by scheduled employment
Goa – Zone A₹561.00Basic ₹412.00 + VDA ₹149.00 a day, two zones
National Floor WageAdvisory floor, not directly enforceable on employers

Act on this: hold Lakshadweep as its own rate master even if your only presence there is a single site. A territory with one establishment on your books is exactly the one that gets left on a stale rate when everything else is updated.

Category GroupCoverageStructureRate
General categoriesAround 50 common commercial designations — managerial, clerical, sales, stores, drivers, security, helpers and general workersConsolidated monthly wage per designation, 8-hour day
Special – chemist & druggistPharmacists, chemists, compoundersConsolidated monthly wage per designation
Special – beauty parloursHair dressers, beauticians and assistantsConsolidated monthly wage per designation
Special – optical shopsOptical mechanics, grinders and related rolesConsolidated monthly wage per designation
Special – photo studiosPhotographers, photo artists and assistantsConsolidated monthly wage per designation
Special – diagnostic labsLaboratory technicians, radiographers, X-ray photographersConsolidated monthly wage per designation
Special – boarding housesRoom boys, attenders and related hospitality rolesConsolidated monthly wage per designation

Source: Labour Department, Union Territory of Lakshadweep Administration, Kavaratti – notifications under the Minimum Wages Act, 1948. Rate figures marked — are to be filled from the notification applicable to the relevant scheduled employment.

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Does Lakshadweep Have Wage Zones?

Lakshadweep does not use wage zones. What shapes compliance instead is the scheduled employment and the practical geography of a territory spread across ten inhabited islands.

One territory, ten inhabited islandsKavaratti, Agatti, Amini, Andrott, Kadmat, Kalpeni, Kiltan, Chetlat, Bitra and Minicoy. The same notification applies across all of them; there is no per-island rate and no urban or rural split.
Rates vary by scheduled employment, not by placeThe variable that changes the rate is which scheduled employment the establishment falls under, and then the worker’s skill category. Location within the territory does not.
Kerala and mainland rates do not applyThe islands lie off the Kerala coast and are administratively linked to Kochi, but Lakshadweep is a separate Union Territory with its own notifications. A Kerala rate card has no application here.

Minimum Wage in Kavaratti, Agatti and Minicoy

The same notified schedule applies across the whole Union Territory. An establishment in Kavaratti, one in Agatti and one in Minicoy all read from the same notification for their scheduled employment, and no island carries a loading or a discount. The practical difficulty is not that the rate differs but that notifications and compliance documents need to be held locally on each island, because inter-island movement depends on shipping schedules and weather rather than on a road journey.

Minimum Wages in Lakshadweep FAQs

Lakshadweep notifies minimum wages per scheduled employment under the Minimum Wages Act, 1948, using the four standard skill categories of unskilled, semi-skilled, skilled and highly skilled. Current rate figures should be taken from the notification applicable to your scheduled employment, published by the Labour Department of the Lakshadweep Administration at Kavaratti.

No. Lakshadweep is a separate Union Territory with its own Labour Department and its own notifications. The islands sit off the Kerala coast and administrative links run through Kochi, which makes importing a Kerala rate card a common error — but Kerala notifications have no application in Lakshadweep.

The four standard categories. Unskilled covers simple duties needing little or no independent judgment; semi-skilled covers routine work of limited scope where others take the important decisions; skilled covers work needing considerable independent judgment and thorough trade knowledge; highly skilled adds supervision of skilled employees.

No. The same notification applies across all ten inhabited islands — Kavaratti, Agatti, Amini, Andrott, Kadmat, Kalpeni, Kiltan, Chetlat, Bitra and Minicoy. There is no per-island rate and no urban or rural split.

Where a rate is notified daily, multiply by 26 for the monthly equivalent; where it is notified monthly, divide by 26 for the daily figure. Overtime is paid at twice the ordinary rate of wages, derived by dividing the daily rate by the hours in the normal working day.

Yes. Contract workers are entitled to the same notified rate as directly employed staff in the same scheduled employment and skill category. Where a contractor pays below the floor, the principal employer is liable for the shortfall, and an agreement at a lower figure is void to that extent.

Alpesh Vaghasiya

Alpesh Vaghasiya (CEO)

Alpesh Vaghasiya is the Co-founder and CEO of Superworks, a smart business management solution that Indian SMBs and large enterprises use to run attendance, payroll, and statutory compliance from a single system. He has spent over 15 years building software out of Surat, founding Artoon Solutions, now a 350+ person product engineering firm serving clients across 30+ countries, in 2009, before launching Superworks in 2020.

His writing comes from the operator's side of compliance - what actually breaks when payroll has to absorb a minimum wage revision, reconcile attendance across multiple sites, or file returns under different state rules in the same month. A Charter Member of TiE Surat and an active angel investor in early-stage Indian startups, he holds a B.E. in Computer Engineering from Gujarat University.

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