In a recent notification from the Labor Department of M.P., significant adjustments have been made to minimum wage rates under the Minimum Wage Act, 1948, effective April 1st, 2024. The revision, previously tied to the All India Consumer Price Index (base year 2001 = 100), now reflects the economic landscape’s current realities. This notification was published on 24/05/2024.
Based on the average index from July to December 2023, which stands at 400, there has been a notable increase of 14 average points compared to the previous index of 386. Consequently, there is a significant rise of Rs 350/month in Variable Dearness Allowance (VDA). This decision, backed by the Hon’ble High Court, Division Bench, Indore, underscores a proactive approach to ensuring fair compensation in line with prevailing economic conditions.
