The Union government announced a hike in minimum wage rates for workers across various sectors, effective October 1, 2024. This adjustment, a response to rising living costs, involves a revision of the Variable Dearness Allowance (VDA), aiming to benefit unskilled to highly skilled workers. The last wage revision was in April 2024, and this increase impacts central sphere establishments.
Revised Wage Rates by Skill Levels
After the VDA revision, minimum wages are categorized by skill level:
- Unskilled Workers: ₹783 per day or ₹20,358 monthly
- Semi-Skilled Workers: ₹868 per day or ₹22,568 monthly
- Skilled, Clerical, and Watch & Ward (without arms): ₹954 per day or ₹24,804 monthly
- Highly Skilled and Watch & Ward (with arms): ₹1,035 per day or ₹26,910 monthly
These rates apply to ‘Area A’ regions and cover professions like construction, housekeeping, loading/unloading, and cleaning. The increase in wages aims to help these workers, especially in the unorganized sector, to cope with inflation.
Biannual Revision Based on CPI
The Central Government revises the VDA twice a year, with adjustments effective on April 1 and October 1. This biannual update is based on the average increase in the Consumer Price Index (CPI) for industrial workers over six months. The latest revision aims to maintain worker wages in line with inflation trends, thereby supporting a sustainable livelihood for those in sectors such as mining, agriculture, watch and ward, and housekeeping.
Supporting the Unorganized Sector
This hike particularly benefits workers in the unorganized sector by providing them with fairer compensation in light of inflationary pressures. The Labour Ministry emphasized the government’s commitment to supporting wage security, especially for those engaged in essential and labor-intensive jobs.
