In a significant move to support workers, particularly those in the unorganised sector, the Centre 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.
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, an official release said. The last revision was made in April 2024.
The minimum wage rates are categorized 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 & unloading for unskilled work will be ₹783 a day (₹20,358 per month); for semi-skilled, ₹868 a day (₹22,568 per month); for skilled, clerical and watch & ward without arms, ₹954 a day (₹24,804 per month); and for highly skilled and watch & ward with arms, ₹1,035 a day (₹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.