Central Government Minimum Wages 2024: Significant Hike Announced for Unorganised Sector Workers

Akash Deep -

In a move to address the rising cost of living and support workers in the unorganised sector, the Central Government of India has announced a significant increase in minimum wage rates, effective from October 1, 2024. This revision is part of the biannual adjustment of the Variable Dearness Allowance (VDA) and is aimed at ensuring fair compensation for workers across various sectors.

New Wage Rates and Categories

The new minimum wage rates are categorized based on skill levels and geographical areas. According to the notification from the Central Labour Commissioner, workers in Area "A," which includes regions with high costs of living and strong economic conditions, will receive the highest minimum wage rates.

- **Unskilled Workers**: ₹783 per day or ₹20,358 per month - **Semi-Skilled Workers**: ₹868 per day or ₹22,568 per month - **Skilled Workers (including clerical roles)**: ₹954 per day or ₹24,804 per month - **Highly Skilled Workers and those in watch and ward roles carrying arms**: ₹1,035 per day or ₹26,910 per month

These rates are structured to reflect the varying costs of living in different geographical areas, classified as A, B, and C, ensuring that workers receive wages that are congruent with the economic realities of their location.

Sectors Benefiting from the Hike

The increased minimum wages will benefit workers engaged in several key sectors, including building construction, loading and unloading, security guards, janitors, housekeeping, mining, and agriculture. These sectors fall under the central sphere establishments and are critical components of the unorganised sector.

Purpose and Impact

The revision of the VDA is a crucial step towards improving the livelihoods of workers in India’s unorganised sector. The government revises these rates biannually, in April and October, based on fluctuations in the Consumer Price Index for industrial workers. This adjustment is designed to help workers manage their expenses amid rising inflation, thereby fostering a more equitable work environment.

The increase in minimum wages is protected by law under the Minimum Wages Act, 1948, which empowers both the central and state governments to fix, review, and revise floor wages for workers in sectors under their jurisdictions. This ensures that employers must pay workers at least the minimum or floor wage, which cannot be overturned by individual or exclusive contracts.

Previous Adjustments

This is the second wage adjustment for 2024, following the previous revision in April. The government’s commitment to regular revisions reflects its ongoing effort to keep wages aligned with the rising cost of living and to support workers in managing their financial burdens.

Additional Resources

For detailed information on the updated wage rates across various sectors, categories, and regions, the public can refer to the website of the Chief Labour Commissioner (Central) at clc.gov.in.

In conclusion, the Central Government’s decision to increase minimum wages for unorganised sector workers from October 1, 2024, is a significant step towards ensuring fair compensation and supporting workers in the face of inflation. This move underscores the government’s commitment to improving the livelihoods of workers across India.

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