The Ministry of Labour and Employment on September 26, 2024 issued regarding the increase in minimum wage rates by revising the Variable Dearness Allowance (VDA).This move aims to help workers cope with the rising cost of living, a concern that has been increasingly pressing in recent times.
The new wage rates will be implemented, benefiting a wide array of workers engaged in sectors such as:
- Construction
- Loading and Unloading
- Housekeeping
- Mining
- Agriculture
- And many more
This revision marks the second adjustment this year, following the previous update in April 2024. The new rates are categorized based on skill levels—unskilled, semi-skilled, skilled, and highly skilled—as well as by geographical areas designated as A, B, and C.
Revised Daily Wage Rates for Area “A”
For workers classified under area “A,” the revised daily minimum wage rates are as follows:
- Unskilled Workers: ₹783 per day (₹20,358 per month)
- Semi-Skilled Workers: ₹868 per day (₹22,568 per month)
- Skilled Workers (Clerical & Watch & Ward without Arms): ₹954 per day (₹24,804 per month)
- Highly Skilled Workers (Watch & Ward with Arms): ₹1,035 per day (₹26,910 per month)
These adjustments are significant as they aim to alleviate some of the financial burdens faced by workers, especially in the context of increasing living expenses.
Understanding the Variable Dearness Allowance (VDA)
The VDA is a component of the minimum wage that is adjusted biannually—on April 1 and October 1—based on the average increase in the Consumer Price Index (CPI) for industrial workers over the preceding six months. This systematic approach ensures that wages keep pace with inflation, thus protecting workers’ purchasing power.
Significance:
The increase in minimum wage rates is particularly important for workers in the unorganized sector, who often lack job security and adequate benefits. Many of these workers are essential to the economy but are frequently underpaid and overworked. By revising the minimum wage, the government acknowledges the contributions of these workers and takes a step toward improving their living standards.
Effective : October 1, 2024,
