On Thursday, the Union government announced an increase in the minimum wage rates for workers, with rates reaching up to Rs 1,035 per day, following a revision of the Variable Dearness Allowance (VDA). This adjustment, aimed at helping workers cope with the rising cost of living, was announced in a statement by the Labour Ministry.
Effective from October 1, 2024, the revised minimum wage rates are categorized by skill level and geographical area. In area ‘A,’ which includes major cities and urban regions, the new wage rates for unskilled workers in sectors such as construction, sweeping, cleaning and loading and unloading will be Rs 783 per day (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 watch and ward staff without arms, will receive Rs 954 per day (Rs 24,804 per month). The highest rate, Rs 1,035 per day (Rs 26,910 per month), will apply to highly skilled workers and watch and ward personnel with arms.
The Central Government’s decision to revise the VDA twice a year—in April and October—aligns with the six-month average increase in the Consumer Price Index (CPI) for industrial workers. The last revision was in April 2024. This biannual adjustment helps ensure that wages keep pace with inflation and the rising cost of living.
Workers in sectors such as building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining and agriculture within central sphere establishments will benefit from the revised wages. This move is particularly significant for those in the unorganized sector, where workers are most vulnerable to the effects of inflation.
Detailed information on the revised minimum wage rates by sector, skill category, and area is available on the Chief Labour Commissioner (Central) website (clc.gov.in). The announcement comes amid ongoing protests by thousands of workers across the country, who have been demanding higher wages and the repeal of four controversial labour codes they argue favor multinational corporations.
The government’s statement emphasized that the adjustment of the VDA is specifically intended to help workers manage the increasing cost of living, referencing a 2.40-point rise in the Consumer Price Index for industrial workers. As inflation continues to impact daily expenses, this wage revision aims to provide some financial relief to workers across various sectors.
