Centre increases minimum wage rates for workers

In a significant move to support workers, particularly those in the unorganised sector, the central government has announced an increase in minimum wage rates by revising the Variable Dearness Allowance (VDA).

This adjustment is aimed at helping workers cope with the rising cost of living, the Ministry of Labour and Employment said in a release on Thursday.

Workers engaged in various sectors, including building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture within central sphere establishments, will benefit from the revised wage rates.

The new wage rates will take effect on October 1, 2024. The last revision was done in April 2024. The minimum wage rates are categorised based on skill levels--unskilled, semi-skilled, skilled, and highly skilled--as well as by geographical area--A, B, and C.

After revision, minimum wage rates in area "A" for workers in construction, sweeping, cleaning, loading and unloading for unskilled work will be Rs 783 a day ( Rs 20,358 per month) for semi-skilled workers and Rs 868 a day (Rs 22,568 per month) for skilled, clerical and watch and wards without arms, Rs 954 a day ( Rs 24,804 per month) and for highly skilled and watch and wards with arms, Rs 1,035 a day (Rs 26,910 per month).

The central government revises the VDA twice a year, effective from April 1 and October 1, based on the six-month average increase in the Consumer Price Index for industrial workers.

A detailed information regarding the minimum wage rates by sector, categories and area is available on the website (clc.gov.in) of the Chief Labour Commissioner (Central), Government of India.