Odisha has emerged as one of the states with the highest levels of minimum wage violations among casual workers. The state has nearly 66 per cent of workers reportedly earning below the legally mandated wage levels, according to a new labour market analysis based on PLFS-2025 data.
The findings were published in a report released by State Bank of India on 8 May, 2026.
The study analysed unit-level data from the Periodic Labour Force Survey and merged it with state-wise minimum wage rates sourced from the Chief Labour Commissioner for 2022.
Among all states, Chhattisgarh recorded the highest incidence of underpayment, with nearly 70 per cent of casual workers receiving wages below the statutory minimum. Odisha followed closely, while Jharkhand ranked next with around 65 per cent of casual workers reportedly underpaid.
The report highlighted major disparities in wage compliance across India’s informal labour market. States such as Maharashtra and West Bengal also recorded significant levels of non-compliance, with nearly one-third of casual workers earning below minimum wage requirements.
Using a logistic regression model to estimate wage violations, the report found that nearly one in four casual workers nationally were being paid below statutory wage levels. The findings point to persistent weaknesses in labour law enforcement and wage- protection systems across the country.
For Odisha, the issue is particularly significant because of the state’s high dependence on informal employment. The study estimated that nearly 70 per cent of the state’s workforce is engaged in informal work, placing Odisha among the states with the largest informal labour presence in India.
Punjab recorded the highest share of informal workers nationally at 82 per cent, followed by Uttar Pradesh and Bihar at 81 per cent each.
The report defined informal workers as employees without written contracts, paid leave or social-security benefits. Most informal employment remains concentrated in rural India, with agriculture accounting for the largest share nationally.
The study also flagged a significant gender gap in wage compliance. Women constituted nearly 45 per cent of underpaid casual workers despite accounting for only around one-fourth of the casual workforce. Male workers represented about 75 per cent of casual labour but accounted for roughly 55 per cent of underpaid workers.
The PLFS-2025 survey covered more than 22,500 first-stage units across India, including villages and urban blocks, making it one of the country’s largest labour-market assessments.
