In a significant move to support workers, particularly those in the unorganised sector, the Indian government has announced an increase in minimum wage rates by revising the Variable Dearness Allowance (VDA). This adjustment aims to help workers cope with the rising cost of living.

Workers engaged in various sectors, including loading and unloading, within central sphere establishments, will benefit from the revised wage rates. The new wage rates will take effect from October 1, 2024, following the last revision in April 2024. This increase is also expected to positively impact textile industry workers, many of whom are in the unorganised sector.

The minimum wage rates are categorised based on skill levels—unskilled, semi-skilled, skilled, and highly skilled—as well as by geographical area—A, B, and C.

After the revision, the minimum wage rates in area “A” for workers will be ₹783 a day (~$9.36) for unskilled workers, which amounts to approximately ₹20,358 per month (~$245.68), semi-skilled workers will earn ₹868 a day (~$10.43), totaling around ₹22,568 per month (~$271.79) while skilled workers (clerical and watch & ward without arms) will receive ₹954 a day (~$11.44), equating to about ₹24,804 per month (~$297.70); and highly skilled workers and watch & ward with arms will earn ₹1,035 a day (~$12.43), which translates to approximately ₹26,910 per month (~$324.88), Ministry of Labour & Employment said in a press release.

The Indian 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.

SBS Zipper News Desk (HU)