The minimum wage is determined based on both skill levels—unskilled, semi-skilled, skilled, and highly skilled—and geographical area, divided into three categories: Area A, B, and C. This structure ensures that wage rates are tailored to local economic conditions and the skill requirements of different job roles.
The Central government on Thursday (September 26) announced a revision of the Variable Dearness Allowance (VDA) and an increase in the minimum wage for workers in the unorganised sector. This adjustment, effective from October 1, 2024, aims to help workers cope with the rising cost of living.
The revised minimum wage will benefit workers engaged in sectors such as building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture. These adjustments apply specifically to workers within central sphere establishments. The last revision of these wage rates took place in April 2024.
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The minimum wage is determined based on both skill levels—unskilled, semi-skilled, skilled, and highly skilled—and geographical area, divided into three categories: Area A, B, and C. This structure ensures that wage rates are tailored to local economic conditions and the skill requirements of different job roles.
After the revision, workers in Area A, which typically includes metro cities, will see a notable increase in their daily wages. Unskilled workers in sectors like construction, cleaning, and loading and unloading will earn Rs 783 per day, translating to Rs 20,358 per month.
Semi-skilled workers will receive Rs 868 per day (Rs 22,568 per month), while skilled, clerical, and watch and ward workers without arms will earn Rs 954 per day (Rs 24,804 per month). Highly skilled workers and watch and ward personnel with arms will see the highest increase, earning Rs 1,035 per day, or Rs 26,910 per month.
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The Centre revises the VDA twice a year, with changes taking effect on April 1 and October 1. The revisions are based on the six-month average increase in the Consumer Price Index (CPI) for industrial workers, ensuring that wages keep pace with inflation and other economic pressures.
The updated wage rates and further details regarding sector-specific and area-specific rates are available on the Chief Labour Commissioner (Central) website at clc.gov.in. This move is expected to provide much-needed financial relief to millions of workers across India, particularly those in sectors most vulnerable to economic fluctuations.