Madhya Pradesh Revises VDA and Minimum Wages from Oct 2024

The Government of Madhya Pradesh has issued a revised notification regarding the Variable Dearness Allowance (VDA) and minimum wages for various scheduled employment, effective from October 1, 2024. This update follows the order dated May 21, 2024, passed by the Hon’ble High Court, Division Bench Indore in WP No. 10772/2024 and related cases, which stayed the revised minimum wage rates that were set to take effect from April 1, 2024 by the Madhya Pradesh Government’s Labor Department notification dated March 4, 2024.

Key Updates

Reason for Revision: The revision comes after a 2-point increase in the All India Consumer Price Index (CPI) for the period from January to June 2024. The CPI increased from 400 to 402, resulting in an increase in the Variable Dearness Allowance (VDA) by Rs. 50/- per month for workers across 67 scheduled employments.

Revised VDA Calculation: For the period from October 1, 2024, to March 31, 2025, the VDA for unskilled, semi-skilled, skilled, and highly skilled workers has been calculated as follows:

• VDA per point: Rs. 25
• Increase in CPI: 2 points (from 400 to 402)
• VDA Increase: Rs. 50 per month for workers in the 67 scheduled employments.

Total VDA and Minimum Wages (October 2024 to March 2025): The total VDA, including the increase, will be Rs. 2275 per month or Rs. 87.50 per day. This amount is added to the basic minimum wage, resulting in the following revised minimum wages:

Schedule – A: Revised Wage Rates (Including VDA)

This revision ensures that the wages of workers in scheduled employments are adjusted to keep up with the rising cost of living, as reflected in the increase in the consumer price index. The Madhya Pradesh Government continues its efforts to provide fair compensation to workers in various sectors.