Centre increases minimum wage rates for workers; check key details

The central government has announced an increase in minimum wage rates to support workers, especially those working in the unorganised sector, by revising the Variable Dearness Allowance (VDA).

“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,” stated a press release by the Ministry of Labour & Employment on September 26.

The VDA is revised by the Centre every six months depending on the change in the Consumer Price Index. The last revision was done in April 2024.

Every year, the government revises the VDA, effective from April 1 and October 1, based on the six-month average increase in the Consumer Price Index for industrial workers, the release said.

“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 from October 1, 2024,” the release added.

The minimum wages are categorised on the basis of skill levels—unskilled, semi-skilled and highly skilled. They’re also categorised by geographical area—A, B and C.

Revised minimum wage rates

• In the area “A” for workers in construction, sweeping, cleaning, loading & unloading for unskilled work, the minimum rate will be ₹783 a day (₹20,358 per month).

• For semi-skilled workers, the minimum rate will be ₹868 a day (₹22,568 per month).

• For skilled, clerical and watch & wards without arms, the minimum rate will be ₹954 a day (₹24,804 per month).

• For highly skilled and watch & ward with arms, the minimum wage rate will be ₹1,035 a day (₹26,910 per month).

“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” the release stated.