Central Government Increases Minimum Wages for Workers; Applicable from October 1

Akash Deep -

In a significant move to support workers, particularly those in the unorganized sector, the Central Government of India has announced an increase in minimum wage rates. This revision, effective from October 1, 2024, is aimed at helping workers cope with the rising cost of living.

Revised Wage Rates

The new wage rates are structured according to workers’ skill levels and geographical regions. For Area "A," which includes major urban centers, the minimum wage rates have been revised as follows:

- **Unskilled Workers**: Those engaged in construction, sweeping, cleaning, and loading and unloading will now receive ₹783 per day, translating to ₹20,358 per month. - **Semi-Skilled Workers**: This category will earn ₹868 per day, or ₹22,568 per month. - **Skilled and Clerical Workers**: Including watch and ward staff without arms, these workers will be paid ₹954 per day, amounting to ₹24,804 per month. - **Highly Skilled Workers**: This includes watch and ward personnel with arms, who will receive ₹1,035 per day, totaling ₹26,910 per month.

Impact on Various Sectors

The revised wages will benefit workers across several sectors, including building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture. These sectors fall under central sphere establishments and are crucial for the country's economic and social fabric.

Basis for Revision

The Central Government revises the Variable Dearness Allowance (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. This adjustment ensures that workers' wages keep pace with inflation and the rising cost of living.

Previous Revision and Frequency

This revision marks the second wage adjustment for 2024, following the previous update in April. The government's biannual revision of VDA is a proactive measure to protect workers' purchasing power in the face of economic fluctuations.

The increase in minimum wages is protected by law under the Minimum Wages Act, 1948. This act empowers both the central and state governments to fix, review, and revise floor wages for workers employed in sectors under their jurisdictions.

Additional Support

In addition to the central government's initiative, some state governments are also taking steps to support workers. For instance, the Delhi Chief Minister, Atishi, has announced an increase in both dearness allowance (DA) and minimum wage for skilled and unskilled workers in Delhi, effective from October 1.

The Central Government's decision to increase minimum wages is a significant step towards ensuring that workers, especially those in the unorganized sector, can better manage the rising cost of living. For more detailed information on the updated wage rates across sectors, categories, and regions, one can refer to the website of the Chief Labour Commissioner (Central) at clc.gov.in.

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