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

Oct 02, 2024 05:41 PM IST

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)
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.

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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 CategoryRates of wages including VDA area wise per day (in Rs)
ABC
Unskilled523+260=783437+218=655350+176=526
Semi-Skilled /Unskilled Supervisory579+289=868494+245=739410+204=616
Skilled /Clerical637+317=954579+289=868494+245=379
Highly Skilled693+342=1035637+317=954579+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:

AreaRates 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

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The minimum piece rate wages with basic and Variable Dearness Allowance for employees employed in stone mines are as follows:

CategoryBasic 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:

AreaRates of wages plus VDA per day
Basic wages (Rs) VDA (Rs) Total (Rs)
A637+317=954
B579+289=868
C494+245=739

The minimum rates of wages for employees employed in watch and ward (with arms) are as follows:

AreaRates of wages plus VDA per day
Basic wages (Rs) VDA (Rs) Total (Rs)
A693+342=1035
B637+317=954
C579+289=868

Minimum wages for sweeping and cleaning workers are as follows:

AreaRates of wages plus VDA per day
Basic wages (Rs) VDA (Rs) Total (Rs)
A523+260=783
B437+218=655
C350+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.”

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