Government hikes minimum wage to offset rising living costs | Fusion - WeRIndia

In an effort to help workers cope with the escalating cost of living, the government has announced an increase in minimum wages by revising the Variable Dearness Allowance (VDA).

The revised wages will be effective from October 1, 2024, benefiting workers across various sectors, especially those in the unorganized sector.

The revision targets workers in sectors like construction, mining, agriculture, loading and unloading, sweeping, cleaning, and housekeeping within central sphere establishments.

The new wage structure follows the last revision implemented in April 2024.

Revised Wage Rates

Minimum wage rates are categorized based on skill levels—unskilled, semi-skilled, skilled, and highly skilled—and geographical areas, denoted as A, B, and C.

For instance, in area A, which typically includes major urban centres, unskilled workers in construction and cleaning will now receive ₹783 per day (₹20,358 per month).

Semi-skilled workers will earn ₹868 daily (₹22,568 monthly). At the same time, skilled workers, including clerical and watch staff without arms, will receive ₹954 per day (₹24,804 per month).

Highly skilled workers, such as watch and ward staff with arms, will earn ₹1,035 daily (₹26,910 per month).

VDA Revision Mechanism

The VDA is revised twice yearly, on April 1 and October 1, to reflect changes in the Consumer Price Index for industrial workers (CPI-IW).

This biannual adjustment ensures that wages keep pace with inflation and rising living expenses.

Inflation Trends

According to the Ministry of Labour and Employment, retail inflation for industrial workers has been steadily decreasing.

In July 2024, inflation stood at 2.15%, a significant drop from 7.54% in July 2023.

For June 2024, inflation was recorded at 3.67%, down from 5.57% in June 2023.

The all-India CPI-IW for July 2024 increased by 1.3 points, reaching 142.7, compared to 141.4 in June.

The government hopes this wage hike will provide relief to workers and ensure fair compensation amidst inflationary pressures.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on February 16, 2017

Image Reference: https://pxhere.com/en/photo/729564