Odisha Among Worst States for Minimum Wage Violations: Report

Why It Matters

The high incidence of wage violations undermines labor standards, depresses household incomes, and signals weak enforcement of India’s minimum‑wage laws, especially in states reliant on informal employment. Addressing these gaps is critical for equitable growth and social stability.

Key Takeaways

• 66% of Odisha’s casual workers earn below minimum wage
• Chhattisgarh tops national underpayment rates at 70%
• One in four casual workers nationwide underpaid
• Women represent 45% of underpaid casual workers
• Informal jobs account for roughly 70% of Odisha’s workforce

Pulse Analysis

The State Bank of India’s latest labour market analysis, built on the Periodic Labour Force Survey (PLFS‑2025), paints a stark picture of wage compliance across India’s informal sector. By merging unit‑level employment data with 2022 state‑wise minimum‑wage benchmarks, the study reveals that Odisha ranks among the top three states where casual workers are most likely to be paid below the statutory floor. With roughly two‑thirds of its casual workforce underpaid, the state’s heavy reliance on informal jobs—estimated at 70% of total employment—exacerbates vulnerability to wage theft and limits access to social protections.

Beyond the headline figures, the report uncovers a gender gap that deepens existing inequities. Women, who make up only about 25% of casual labor, account for 45% of underpaid workers, suggesting that wage violations disproportionately affect female earners. This disparity aligns with broader patterns in India’s rural economy, where agricultural work dominates and formal contracts are scarce. The logistic regression model used by the researchers indicates that systemic enforcement failures, rather than isolated incidents, drive the nationwide underpayment rate of 25% among casual workers.

Policy implications are clear: strengthening labour law enforcement, expanding coverage of minimum‑wage schemes, and targeting gender‑specific interventions are essential to curb the tide of underpayment. States like Maharashtra and West Bengal, despite lower violation rates, still see one‑third of casual workers earning below the minimum, underscoring that the issue is not confined to the worst‑performing regions. As India pushes for inclusive growth, closing the compliance gap will require coordinated action among central and state labour ministries, employers, and civil‑society watchdogs to ensure that informal workers receive fair wages and basic social security.