Government Announces Hike In Minimum Wage Rates For Unorganised Workers

The Central Government has announced an increment in the minimum wage rates by revising the Variable Dearness Allowance (VDA). The new wage rate will become effective on October 1.

According to the PIB’s official release, the decision has been taken to support workers, particularly those who work in the unorganised sector. The new adjustment will help workers cope with the rising cost of living. “The central government announced an increment in the minimum wage rates by revising the Variable Dearness Allowance (VDA),”  a PIB release mentioned.

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Workers who are working in various unorganised sectors, including building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture within the central sphere establishments, will get benefits through the revised minimum wage rates.

The minimum wage rates are categorised based on skills and geographical areas. The category under skills covers unskilled, semi-skilled, skilled, and highly skilled workers, and the geographical area categories are A, B, and C.

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The official notification said, “After revision, minimum wage rates in area “A” for workers in construction, sweeping, cleaning, loading, and unloading for unskilled work will be Rs 783 a day (Rs 20,358 per month) for semi-skilled workers, Rs 868 a day (Rs 22,568 per month) for skilled, clerical, and watch & wards without arms, Rs 954 a day (Rs 24,804 per month), and for highly skilled and watch & wards with arms, Rs 1,035 a day (Rs 26,910 per month)”.

The Central Government revises the VDA two times a year, one in April and another in October, based on the 6-month average increase in the Consumer Price Index (CPI) for industrial workers.