The central government has revised the Variable Dearness Allowance (VDA), in response to the rising living costs, leading to a substantial increase in the minimum wage rates for unorganised sector workers, effective from October 1, 2024.
"Workers engaged in various sectors, including building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture within central sphere establishments, will benefit from the revised wage rates," the Ministry of Labour and Employment said in a press release dated September 26, 2024.
Also Read: New Apple iPhone SE coming early next year, to get edge-to-edge screen and no home button: Report
Minimum wage rates are categorised based on skill levels. This includes unskilled, semi-skilled, skilled, and highly skilled. The categorisation also goes down to geographical areas A, B, and C.
The government usually revises the VDA twice a year on April 1 and October 1 based on the six-month average increase in the Consumer Price Index (CPI) for industrial workers.
What are the new minimum wage rates?
| Worker Category | Rates of wages including VDA area wise per day (in Rs) | ||
| A | B | C | |
| Unskilled | 523+260=783 | 437+218=655 | 350+176=526 |
| Semi-Skilled /Unskilled Supervisory | 579+289=868 | 494+245=739 | 410+204=616 |
| Skilled /Clerical | 637+317=954 | 579+289=868 | 494+245=379 |
| Highly Skilled | 693+342=1035 | 637+317=954 | 579+289=868 |
Rates of VDA for employees employed in loading and unloading in (i) Goods sheds, parcel offices of Railways, (ii) Other goods sheds, godowns, warehouses and other similar employment, (iii) Docks and ports, and (iv) Passengers and goods and cargo carried out at airports (both international and domestic) are as follows:
{{/usCountry}}Rates of VDA for employees employed in loading and unloading in (i) Goods sheds, parcel offices of Railways, (ii) Other goods sheds, godowns, warehouses and other similar employment, (iii) Docks and ports, and (iv) Passengers and goods and cargo carried out at airports (both international and domestic) are as follows:
{{/usCountry}}| Area | Rates of wages plus VDA per day | ||||
| Basic Wages (Rs.) | VDA (Rs) | Total (Rs) | |||
| ‘A’ | 523 | + | 260 | = | 783 |
| ‘B’ | 437 | + | 218 | = | 655 |
| ‘C’ | 350 | + | 176 | = | 526 |
Also Read: New Zealand hikes student, work, tourist visa fees by almost 60% from this October
The minimum piece rate wages with basic and Variable Dearness Allowance for employees employed in stone mines are as follows:
| Category | Basic Wages | VDA | Total | ||
| Excavation & removal of over burden with 50 meters lead/ 1.5 meters lift | |||||
| (i) Soft soil | ₹351 | + | ₹179 | = | ₹530 |
| (ii) Soft soil with rock | ₹531 | + | ₹264 | = | ₹795 |
| (iii) Rock | ₹703 | + | ₹350 | = | ₹1053 |
| Removal and stacking of rejected stones with 90 metres lead/ 1.5 metres lift. * | ₹283 | + | ₹143 | = | ₹426 |
| Stone breaking or stone crushing for the stone size of: | |||||
| (i) 1.0 inch to 1.5 inches | ₹2171 | + | ₹1061 | = | ₹3232 |
| (ii) Above 1.5 inches to 3.0 inches | ₹1857 | + | ₹907 | = | ₹2764 |
| (iii) Above 3.0 inches to 5.0 inches | ₹1088 | + | ₹535 | = | ₹1623 |
| (iv) Above 5.0 inches | ₹893 | + | ₹441 | = | ₹1334 |
All the workers will be entitled to time rate of minimum wages plus special allowance, for unskilled category of above ground workers in respect of scheduled employment in stone mines.
The minimum rates of wages for employees in watch and ward (without arms) will be as follows:
| Area | Rates of wages plus VDA per day | ||||
| Basic wages (Rs) | VDA (Rs) | Total (Rs) | |||
| A | 637 | + | 317 | = | 954 |
| B | 579 | + | 289 | = | 868 |
| C | 494 | + | 245 | = | 739 |
The minimum rates of wages for employees employed in watch and ward (with arms) are as follows:
| Area | Rates of wages plus VDA per day | ||||
| Basic wages (Rs) | VDA (Rs) | Total (Rs) | |||
| A | 693 | + | 342 | = | 1035 |
| B | 637 | + | 317 | = | 954 |
| C | 579 | + | 289 | = | 868 |
Minimum wages for sweeping and cleaning workers are as follows:
| Area | Rates of wages plus VDA per day | ||||
| Basic wages (Rs) | VDA (Rs) | Total (Rs) | |||
| A | 523 | + | 260 | = | 783 |
| B | 437 | + | 218 | = | 655 |
| C | 350 | + | 176 | = | 526 |
Theese revised minimum wage rates will be applicable to those employed through “Employment of Sweeping and Cleaning excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993.”
Also Read: New rules for easier passive mutual fund investing with Sebi's new MF Lite framework