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 from October 1.

According to the PIB’s official release the decision has been taken to support workers, particularly those who work in the unorganized sector. The new adjustment will help workers to 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 unorganized 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 categorized 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 & unloading for unskilled work will be Rs 783 a day ( Rs 20,358 per month) for semi-skilled 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 & ward with arms Rs1,035 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-months average increase in the Consumer Price Index (CPI) for Industrial workers.