Minimum wages for unorganised sector increased from Oct 1 through Variable Dearness Allowance hike

The central government increased minimum wages for unorganised sector workers from October 1, 2024, by increasing Variable Dearness Allowance (VDA)

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.

The Government raised minimum wages for unorganised workers using the Variable Dearness Allowance (VDA)(Amit Dave/Reuters)

"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.

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:

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

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.”