India Increases Minimum Wages for Workers Starting October 2024
New Delhi [India], September 26: In a significant move to support workers, especially 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 aims to help workers cope with the rising cost of living, according to the Ministry of Labour and Employment.
Workers 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 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. Detailed information regarding the minimum wage rates by sector, categories, and area is available on the website of the Chief Labour Commissioner (Central), Government of India.
Doubts Revealed
Minimum Wages -: Minimum wages are the lowest amount of money that workers must be paid by law for their work. It helps ensure that workers can afford basic needs like food and shelter.
Variable Dearness Allowance (VDA) -: Variable Dearness Allowance (VDA) is extra money given to workers to help them deal with the rising cost of living. It changes based on how much prices for things like food and clothes go up.
Effective from October 1, 2024 -: This means that the new minimum wages will start being paid from October 1, 2024. Before this date, the old wage rates will still be in use.
Sectors -: Sectors are different types of jobs or industries where people work. In this case, it includes construction, cleaning, and agriculture.
Unskilled Workers -: Unskilled workers are people who do jobs that don’t need special training or education. They usually do simple tasks.
Highly Skilled Workers -: Highly skilled workers are people who have special training or education to do their jobs. They usually do more complex tasks.
Area ‘A’ -: Area ‘A’ refers to specific regions or cities in India where the cost of living is higher. Workers in these areas get paid more to help cover their expenses.
Rs 783 per day -: Rs 783 per day means that unskilled workers in area ‘A’ will earn 783 Indian Rupees for each day they work.
Rs 1,035 per day -: Rs 1,035 per day means that highly skilled workers in area ‘A’ will earn 1,035 Indian Rupees for each day they work.
