Centre hikes minimum wage for unorganised workers

New Delhi, Sep 26 (FN Agency) The Central Government on Thursday announced an increase in minimum wage rates by revising the Variable Dearness Allowance (VDA) to support workers, particularly those in the unorganized sector. With this, the minimum wage rates for unskilled workers have increased to Rs 20,358 per month, for semi-skilled workers to Rs 22,568 per month, and for skilled workers to Rs 24,804 per month, the Ministry of Labour and Employment said in a statement. The minimum wage rates for highly skilled workers have increased to Rs 26,910 per month. The new wage rates will take effect from October 1, 2024. The last revision was done in April 2024, it said. This decision comes a day after the Delhi government revised the minimum wage for workers in the national capital.

“Workers engaged in various sectors, including building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture within central sphere establishments, will benefit from the revised wage rates,” the Ministry said. The minimum wage rates are categorized based on skill levels—unskilled, semi-skilled, skilled, and highly skilled—as well as by geographical area—A, B, and C. 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 twice a year, effective from April 1 and October 1, based on the six-month average increase in the Consumer Price Index for industrial workers.