Govt raises minimum wages to combat rising living costs

New Delhi: In a move aimed at alleviating the financial strain on workers amidst increasing living expenses, the Union government announced a significant hike in minimum wage rates on Thursday. The revision, which adjusts the variable dearness allowance (VDA), will see daily wages rise up to Rs 1,035 for some categories of workers.

Set to take effect from October 1, 2024, the new rates represent a substantial increase from the previous revision made in April 2024. The labour ministry stated that this adjustment is designed to help workers cope with the escalating cost of living, particularly benefiting those in the unorganised sector.

Under the revised structure, workers in area ‘A’ engaged in construction, sweeping, cleaning, loading, and unloading will see their minimum wages increase across all skill levels. Unskilled workers will now earn Rs 783 per day (Rs 20,358 monthly), while semi-skilled workers will receive Rs 868 daily (Rs 22,568 monthly). Skilled workers including clerical staff and unarmed security personnel, will be entitled to Rs 954 per day (Rs 24,804 monthly). The highest bracket, covering highly skilled workers and armed security guards, will now earn Rs 1,035 daily (Rs 26,910 monthly).

The government categorises minimum wage rates based on skill levels - unskilled, semi-skilled, skilled, and highly skilled - as well as geographical areas classified as A, B, and C. This system ensures a nuanced approach to wage determination across different regions and skill sets.

The Central government revises the VDA biannually, with adjustments taking effect on April 1 and October 1. These revisions are calculated based on the average increase in the Consumer Price Index for industrial workers over the preceding six months.

Workers across various sectors within central sphere establishments, including mining and agriculture, stand to benefit from this wage hike. Detailed information on sector-specific rates is available on the Chief Labour Commissioner’s website.

This nationwide move follows a similar announcement by Delhi Chief Minister Atishi on Wednesday, who declared increased minimum wages for workers in the unorganised sector ahead of the festival season. The Delhi government set minimum wages at Rs 18,066 for unskilled, Rs 19,929 for semi-skilled, and Rs 21,917 for skilled workers.