In a significant move to support 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 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. Last revision was done 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 Rs 783 a day ( Rs 20,358 per month) for semi-skilled Rs 868 a day ( Rs 22,568 per month) for skilled, clerical and watch & wards without arms Rs 954 a day ( Rs 24,804 per month) and for highly skilled and watch & ward with arms Rs1,035 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 (clc.gov.in) of the Chief Labour Commissioner (Central), Government of India.

Minimum wage increase via VDA revision boosts central sphere worker pay effective October, adjusting rates across skill and area classifications. Central Government revised the Variable Dearness Allowance, increasing minimum wages for central sphere establishments effective October 1, 2024. The adjustment covers multiple unorganized sector activities and classifies wages by skill level and geographical area. The VDA is revised twice yearly based on the six month average increase in the Consumer Price Index for Industrial Workers, and detailed revised rates by sector, category and area are published on the official labour website.