In a pivotal move aimed at uplifting workers, particularly those in the unorganized sector, the Central Government has announced a significant revision in minimum wage rates. This revision, driven by an increase in the Variable Dearness Allowance (VDA), will help workers across various industries cope with the increasing cost of living. The new wage structure, effective from October 1, 2024, will apply to workers engaged in industries such as construction, agriculture, mining, loading and unloading, watch and ward, housekeeping, and more.
Highlights of the wage revision:
1. Revised variable dearness allowance (VDA):
The latest adjustment in VDA is based on the six-month average Consumer Price Index (CPI) for industrial workers, which recorded an increase from 399.70 to 402.09, resulting in a 2.40-point rise. This change will impact wage rates across various skill levels—unskilled, semi-skilled, skilled, and highly skilled workers—as well as different geographical areas (classified as A, B, and C). This revision aims to mitigate the impact of inflation on workers’ real incomes.
2. Minimum wage structure:
The updated wage rates for workers in different sectors are categorized by skill levels and geographical areas:
- For Area A (major cities and urban centers):
- Unskilled workers in construction, sweeping, cleaning, loading, and unloading will now earn ₹783 per day or ₹20,358 per month.
- Semi-skilled workers will receive ₹868 per day or ₹22,568 per month.
- Skilled, clerical, and watch & ward workers without arms will be paid ₹954 per day or ₹24,804 per month.
- Highly skilled workers and watch & ward with arms will earn ₹1,035 per day or ₹26,910 per month.
- For Area B (medium-sized towns):
- Unskilled workers will earn ₹655 per day.
- Semi-skilled workers will receive ₹739 per day.
- Skilled workers and clerical staff will earn ₹868 per day.
- Highly skilled workers will receive ₹954 per day.
- For Area C (smaller towns and rural areas):
- Unskilled workers will receive ₹526 per day.
- Semi-skilled workers will earn ₹614 per day.
- Skilled workers and clerical staff will be paid ₹735 per day.
- Highly skilled workers will get ₹868 per day .
Key aspects of the revision
1. Basis for the revision
The revised VDA has been calculated based on the CPI for industrial workers, which rose from 399.70 to 402.09 by June 30, 2024, leading to an increase of 2.40 points. This results in an upward adjustment in wages for workers in multiple sectors. The VDA is revised twice a year, with revisions taking place on April 1 and October 1.
2. Agricultural sector wage rates
The revised minimum wage rates for workers employed in the agriculture sector, which includes tasks such as cultivation, dairy, and related activities, are now divided into three geographic categories: Area A (Major Cities), Area B (Medium Towns), and Area C (Rural Areas). The rates include both the basic wage and the revised VDA:
- Unskilled Workers:
- Area A: ₹500 per day (₹333 basic + ₹167 VDA)
- Area B: ₹457 per day (₹303 basic + ₹154 VDA)
- Area C: ₹452 per day (₹300 basic + ₹152 VDA)
- Semi-Skilled/Unskilled Supervisory:
- Area A: ₹546 per day (₹364 basic + ₹182 VDA)
- Area B: ₹502 per day (₹335 basic + ₹167 VDA)
- Area C: ₹462 per day (₹307 basic + ₹155 VDA)
- Skilled/Clerical:
- Area A: ₹593 per day (₹395 basic + ₹198 VDA)
- Area B: ₹546 per day (₹364 basic + ₹182 VDA)
- Area C: ₹501 per day (₹334 basic + ₹167 VDA)
- Highly Skilled Workers:
- Area A: ₹656 per day (₹438 basic + ₹218 VDA)
- Area B: ₹611 per day (₹407 basic + ₹204 VDA)
- Area C: ₹546 per day (₹364 basic + ₹182 VDA)(mygov_17272659741 (1)).
3. Mining sector wage rates
The mining industry, covering both surface and underground work, will also benefit from the revised wages. The new rates are structured to reflect the type of work—whether above or below ground—and skill level:
- Unskilled Workers:
- Above ground: ₹526 per day (₹350 basic + ₹176 VDA)
- Below ground: ₹655 per day (₹437 basic + ₹218 VDA)
- Semi-Skilled/Unskilled Supervisory:
- Above ground: ₹655 per day (₹437 basic + ₹218 VDA)
- Below ground: ₹783 per day (₹523 basic + ₹260 VDA)
- Skilled/Clerical:
- Above ground: ₹783 per day (₹523 basic + ₹260 VDA)
- Below ground: ₹912 per day (₹610 basic + ₹302 VDA)
- Highly Skilled Workers:
- Above ground: ₹912 per day (₹610 basic + ₹302 VDA)
- Below ground: ₹1,020 per day (₹683 basic + ₹337 VDA)(mygov_17272659741 (1)).
4. Construction and Infrastructure sector wage rates
Those working in construction, maintenance of roads, and underground utility operations such as electric, water, and communication lines, will also see wage increases:
- Unskilled Workers:
- Area A: ₹783 per day (₹523 basic + ₹260 VDA)
- Area B: ₹655 per day (₹437 basic + ₹218 VDA)
- Area C: ₹526 per day (₹350 basic + ₹176 VDA)
- Semi-Skilled/Unskilled Supervisory:
- Area A: ₹868 per day (₹579 basic + ₹289 VDA)
- Area B: ₹739 per day (₹494 basic + ₹245 VDA)
- Area C: ₹614 per day (₹410 basic + ₹204 VDA)
- Skilled/Clerical:
- Area A: ₹954 per day (₹637 basic + ₹317 VDA)
- Area B: ₹868 per day (₹579 basic + ₹289 VDA)
- Area C: ₹739 per day (₹494 basic + ₹245 VDA)
- Highly Skilled Workers:
- Area A: ₹1,035 per day (₹693 basic + ₹342 VDA)
- Area B: ₹954 per day (₹637 basic + ₹317 VDA)
- Area C: ₹868 per day (₹579 basic + ₹289 VDA)(mygov_17272659741 (1))(mygov_17272659741 (1)).
5. Watch and Ward (Security Services)
The wages for workers in watch and ward services, both with and without arms, have also been revised:
- Without Arms:
- Area A: ₹954 per day (₹637 basic + ₹317 VDA)
- Area B: ₹868 per day (₹579 basic + ₹289 VDA)
- Area C: ₹739 per day (₹494 basic + ₹245 VDA)
- With Arms:
- Area A: ₹1,035 per day (₹693 basic + ₹342 VDA)
- Area B: ₹954 per day (₹637 basic + ₹317 VDA)
- Area C: ₹868 per day (₹579 basic + ₹289 VDA).
6. Stone Mines
The stone mining industry, including tasks like excavation, removal of overburden, and stone breaking, will see significant wage adjustments. The wages depend on the type of work, such as the size of stones being processed:
- Excavation and Removal:
- Soft Soil: ₹530 per day (₹351 basic + ₹179 VDA)
- Soft Soil with Rock: ₹795 per day (₹531 basic + ₹264 VDA)
- Rock: ₹426 per day (₹283 basic + ₹143 VDA)
- Stone Breaking:
- Stone Size 1.0 to 1.5 inches: ₹3232 per day
- Stone Size 1.5 to 3.0 inches: ₹2764 per day
- Stone Size 3.0 to 5.0 inches: ₹1623 per day
- Stone Size above 5.0 inches: ₹1334 per day.
7. Sweeping and Cleaning
- Area A: ₹783 per day (₹523 basic + ₹260 VDA)
- Area B: ₹655 per day (₹437 basic + ₹218 VDA)
- Area C: ₹526 per day (₹350 basic + ₹176 VDA)
8. Loading and unloading
- Area A: ₹783 per day (₹523 basic + ₹260 VDA)
- Area B: ₹655 per day (₹437 basic + ₹218 VDA)
- Area C: ₹526 per day (₹350 basic + ₹176 VDA)
3. Beneficiaries across multiple sectors:
Workers across a broad range of industries, including agriculture, mining, construction, and maintenance of infrastructure like roads, runways, electric cables, and water supply lines, will benefit from this wage revision. For example, employees in mining, stone mines, and those involved in loading and unloading in railways, docks, and warehouses will all see a boost in their daily wages, helping them manage the rising cost of living.
4. Twice-a-Year adjustments:
The VDA is revised biannually, with changes taking effect on April 1 and October 1 each year, based on CPI fluctuations. The government remains committed to ensuring that wages stay aligned with inflationary pressures, providing essential financial support to workers.
Conclusion:
This wage revision reflects the government’s dedication to improving the welfare of workers, especially those in vulnerable sectors. With rising living costs, the increase in minimum wage rates is a welcome step that will positively impact the livelihood of millions of workers across India. For more details on the specific wage rates by sector and region, workers can refer to the official website of the Chief Labour Commissioner (Central), Government of India at clc.gov.in.
This wage hike, along with regular revisions to the VDA, ensures that workers can maintain a decent standard of living despite inflationary pressures, contributing to India’s larger goal of equitable economic growth.
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