Central Government Increases Minimum Wage Rates for Workers
In a significant development aimed at supporting workers, especially those in the unorganized sector, the Central Government has announced a rise in minimum wage rates by revising the Variable Dearness Allowance (VDA). This update is designed to help workers manage the increasing cost of living and will benefit those employed in a range of sectors, such as:
- Building construction
- Loading and unloading
- Watch and ward services
- Sweeping, cleaning, housekeeping
- Mining and agriculture
The revised wage rates will be applicable from October 1, 2024, providing much-needed financial relief to workers in central sphere establishments. The last revision took place in April 2024.
Minimum Wage Rates by Skill Level and Area
The new minimum wage rates have been categorized based on both the skill level of the workers and their geographical location:
- Unskilled Workers (Area A): ₹783 per day (₹20,358 per month)
- Semi-Skilled Workers (Area A): ₹868 per day (₹22,568 per month)
- Skilled/Clerical/Watch & Ward (Without Arms) (Area A): ₹954 per day (₹24,804 per month)
- Highly Skilled/Watch & Ward (With Arms) (Area A): ₹1,035 per day (₹26,910 per month)
These wage rates will vary slightly based on geographical areas classified as A, B, and C.
VDA Revision Timeline
The Central Government adjusts the Variable Dearness Allowance (VDA) twice a year—on April 1 and October 1—based on the six-month average rise in the Consumer Price Index (CPI) for industrial workers.
Source : PIB
