Central Govt Hikes Minimum Wage Rates with Revised Variable Dearness Allowance to Support Workers in Unorganized Sectors

New Delhi: In a significant move aimed at supporting workers, particularly those in the unorganized sector, the Central Government has announced an increase in minimum wage rates by revising the Variable Dearness Allowance (VDA). This adjustment is set to help workers manage the rising cost of living and will come into effect on October 1, 2024.

Workers across various sectors such as building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture within central sphere establishments will benefit from this wage hike. The previous revision was implemented in April 2024.

The updated minimum wage rates are categorized based on skill levels—unskilled, semi-skilled, skilled, and highly skilled—as well as by geographical areas—A, B, and C. These categories ensure that wages are adjusted fairly according to the type of work and region.

For area “A,” which includes metropolitan regions, the revised wage rates for unskilled workers engaged in construction, sweeping, cleaning, and loading/unloading will now be Rs 783 per day (equivalent to Rs 20,358 per month). Semi-skilled workers will earn Rs 868 per day (Rs 22,568 per month), while skilled and clerical workers, as well as those employed in watch and ward duties without arms, will receive Rs 954 per day (Rs 24,804 per month). Highly skilled workers and those performing watch and ward duties with arms will now earn Rs 1,035 per day (Rs 26,910 per month).

The government revises the VDA twice annually, effective from April 1 and October 1, based on the six-month average increase in the Consumer Price Index (CPI) for industrial workers. This ensures that the wages remain in line with inflation and cost-of-living changes.

For detailed information on the revised minimum wage rates across different sectors, skill levels, and geographical categories, workers and employers can refer to the official website of the Chief Labour Commissioner (Central), Government of India, at clc.gov.in.