The Government of Odisha on September 30th 2024 announced the revised minimum wages and the introduction of a Variable Dearness Allowance (VDA). This update affects unskilled, semi-skilled, skilled, and highly skilled employees in 91 scheduled employments.
Variable Dearness Allowance (VDA)
The State Minimum Wages Advisory Board, during its 53rd meeting, proposed the introduction of a Variable Dearness Allowance (VDA) to keep wages in line with inflation and changes in the cost of living. The VDA is calculated based on the rise in the All India Consumer Price Index (CPI) for Industrial Workers, with an adjustment rate of Rs. 2.60 for each point increase.
Recent Changes in the CPI
As of June 30, 2024, the average CPI for Industrial Workers reached 139.6, up from 138.8, leading to an increase of 0.8 points. This increase necessitated a corresponding adjustment in the VDA.
Revised Minimum Wages and VDA Rates
Effective from October 1, 2024, the following rates will apply:
| Category of Employee | Minimum Wage per Day (as of 18.07.2024) | V.D.A. per Day (from 01.10.2024) | Total Minimum Wage (Including VDA from 01.10.2024) |
| Unskilled | Rs. 450/- | Rs. 2/- | Rs. 452/- |
| Semi-skilled | Rs. 500/- | Rs. 2/- | Rs. 502/- |
| Skilled | Rs. 550/- | Rs. 2/- | Rs. 552/- |
| Highly Skilled | Rs. 600/- | Rs. 2/- | Rs. 602/- |
Breakdown of the Rates
- Unskilled Workers: The minimum wage has been set at Rs. 450 per day, with the VDA adding an additional Rs. 2, bringing the total to Rs. 452.
- Semi-skilled Workers: These employees will now earn a minimum of Rs. 500 per day, plus Rs. 2 in VDA, totalling Rs. 502.
- Skilled Workers: With a base wage of Rs. 550, skilled workers will see their total daily wage rise to Rs. 552 with the inclusion of the VDA.
- Highly Skilled Workers: The top tier will receive a minimum of Rs. 600, leading to a total of Rs. 602 per day when factoring in the VDA.
Effective Date: October 1, 2024.
