Datanomics: India's informal sector wages below minimum benchmarks

ASUSE data shows informal sector earnings remain below minimum wage levels, with own-account and mobile enterprises continuing to dominate

The  analysis of the latest Annual Survey of Unincorporated Sector Enterprises (ASUSE) shows that earnings in India’s unincorporated non-agricultural sector remained modest across manufacturing, trade and services. Average daily earnings in these sectors were below even the minimum-wage benchmark for unskilled non-agricultural work in smaller towns and non-metro areas. The gap widens when compared with wage categories for semi-skilled and skilled workers. The data also points to the continued dominance of own-account enterprises.

 

Daily earnings below minimum-wage benchmark

 

Average daily earnings was ₹391 in manufacturing, ₹401 in trade, and ₹420 in other services, all below the minimum-wage benchmark of ₹477 per day for unskilled non-agricultural work. Semi-skilled and skilled minimum-wage categories were higher.

Own-account enterprises continue to dominate

 

The number of establishments rose from 59.7 million in 2022 to 79.2 million in 2025. However, own-account enterprises accoun­ted for 86 per cent of all establishments.

Enterprises without fixed premises on the rise

 

The share of enterprises operating without fixed premises increased from 14.8 per cent in 2022 to 19 per cent in 2025. The rise points to the continued prevalence of small-scale business activity across the sector.