Economy National

Central Government Hikes Minimum Wage Rates for Workers Across Sectors Effective from October 1, 2024

In a significant move aimed at enhancing the livelihood of workers, especially those in the unorganized sector, the Central Government has announced an increase in the minimum wage rates by revising the Variable Dearness Allowance (VDA). The revised rates will come into effect from October 1, 2024, and are expected to provide much-needed relief to workers grappling with the rising cost of living.

The new wage rates will apply to workers engaged in various sectors, such as building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture, who are employed under central sphere establishments. This update marks the second revision of the year, following a previous update in April 2024.

Revised Minimum Wage Rates by Skill Level and Area

The revised minimum wage rates are categorized based on skill levels—unskilled, semi-skilled, skilled, and highly skilled—along with the geographical areas defined as A, B, and C.

In Area A:

Unskilled workers: ₹783 per day (₹20,358 per month)

Semi-skilled workers: ₹868 per day (₹22,568 per month)

Skilled/Clerical and Watch & Ward (without arms): ₹954 per day (₹24,804 per month)

Highly skilled/Watch & Ward (with arms): ₹1,035 per day (₹26,910 per month)

The revision is expected to benefit millions of workers employed in sectors like construction and housekeeping, ensuring fair wages for different categories of work.

VDA Revision Timeline

The Central Government revises the VDA twice annually—on April 1 and October 1—based on the six-month average increase in the Consumer Price Index for industrial workers. This systematic revision helps maintain the purchasing power of workers, making adjustments in accordance with inflation and cost of living.

Workers and employers can access the detailed information regarding the revised minimum wage rates, categorized by sector, skill level, and geographical area, on the official website of the Chief Labour Commissioner (Central), Government of India, at clc.gov.in.

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