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The Indian government has taken a significant step towards improving the livelihoods of its workforce by announcing a substantial increase in minimum wage rates. This decision, effective from October 1, 2024, is a testament to the Centre's commitment to supporting workers and ensuring their fair compensation in an increasingly challenging economic landscape. The revised wage rates, determined through a revision of the Variable Dearness Allowance (VDA), will impact workers engaged in a wide range of sectors within central sphere establishments. These include crucial industries such as building construction, loading and unloading, watch and ward services, sweeping and cleaning, housekeeping, mining, and agriculture.
The revised minimum wage rates are categorized based on skill levels, encompassing unskilled, semi-skilled, skilled, and highly skilled workers. Additionally, geographical areas are also factored into the calculations, with three categories: A, B, and C. This nuanced approach recognizes the regional variations in cost of living and ensures a more equitable distribution of benefits. For instance, in area 'A', unskilled workers in construction, sweeping, cleaning, loading and unloading will see their daily wage increase to Rs 783, translating to a monthly income of Rs 20,358. The wage rates for semi-skilled, skilled, clerical, and watch and ward personnel without arms have been raised to Rs 868 per day (Rs 22,568 per month), while highly skilled workers and those in watch and ward positions with arms will earn Rs 1,035 per day (Rs 26,910 per month).
The Ministry of Labour and Employment has justified this decision as a vital measure to help workers cope with the rising cost of living. This move addresses the concerns of many working-class citizens who have been grappling with inflation and its impact on their purchasing power. The implementation of the new wage rates on October 1, 2024, follows the last revision in April 2024. The VDA is adjusted twice a year by the central government, effective from April 1 and October 1, based on the six-month average increase in the Consumer Price Index for industrial workers. This mechanism ensures that the minimum wage rates remain relevant and reflect the changing economic realities. It is anticipated that this increase in minimum wages will have a positive ripple effect across the Indian economy, boosting consumer spending and driving overall economic growth.
Source: In big push, Centre increases minimum wage for workers