Govt Hikes Minimum Wage Rates for Unorganized Sector Workers, Effective October 2024

Central Government has announced a significant revision in minimum wage rates, aiming to support workers in the unorganized sector amidst rising living costs. The increase comes through the adjustment of the Variable Dearness Allowance (VDA), which will take effect from October 1, 2024. This change is expected to benefit workers engaged in various sectors such as building construction, housekeeping, mining, agriculture, loading, unloading, and sweeping. The last revision of VDA was implemented in April 2024. 

The updated wage rates are divided according to skill levels—unskilled, semi-skilled, skilled, and highly skilled—along with geographical classifications labeled as Area A, B, and C. Workers in Area A, employed in construction, cleaning, loading, and unloading jobs, will now receive Rs 783 per day (Rs 20,358 per month) for unskilled labor. For semi-skilled labor, the daily wage will rise to Rs 868 (Rs 22,568 per month), while skilled and clerical workers will receive Rs 954 a day (Rs 24,804 per month). Highly skilled workers, including watch and ward personnel with arms, will earn Rs 1,035 per day (Rs 26,910 per month).

The VDA, which is revised twice annually in April and October, is calculated based on the six-month average increase in the Consumer Price Index for industrial workers. This revision reflects the government's ongoing efforts to improve wages and protect workers from inflationary pressures. For more details on the minimum wage rates by sector and area, individuals can refer to the Chief Labour Commissioner (Central) website. 

This move is expected to offer significant relief to workers, helping them cope with the increasing cost of living.