Minimum Wage Hike: Announcement of increase in minimum wages for unorganized sector

The central government has decided to increase the minimum wage for unorganized workers working in sectors like manufacturing, mining and agriculture from October 1. The government says that this increase will help the workers to deal with inflation. The Consumer Price Index (CPI) for industrial workers has increased by 2.40 points

The central government has decided to increase the minimum wage for unorganized workers working in sectors like manufacturing, mining and agriculture from October 1. The government says that this increase will help the workers to deal with inflation. The Consumer Price Index (CPI) for industrial workers has increased by 2.40 points. After the amendment, the minimum wage for unskilled workers working in the manufacturing sector will be Rs 783 per day (Rs 20,358 per month).

For semi-skilled workers, it has been made Rs 868 per day (Rs 22,568 per month). For skilled workers, clerks and unarmed watchmen, it will be Rs 954 per day (Rs 24,804 per month). For highly skilled and armed watchmen, it will be Rs 1,035 per day (Rs 26,910 per month). This revision in wages is done twice a year. This revision is based on the six-month average increase in CPI for industrial workers.

The new wage rates will come into effect from October 1, 2024. Earlier, the wage rates were last changed in April 2024. The minimum wages of workers have been fixed on the basis of their skill level and geographical area. According to the skill level, workers have been divided into unskilled, semi-skilled, skilled and highly skilled categories, while geographical areas have been divided into A, B and C categories.

This decision will improve the economic condition of workers in the unorganized sector, increase their income and thus provide relief to them in dealing with the challenge of inflation. The Central Government revises the VDA on 1st April and 1st October every year based on the six-month average increase in the Consumer Price Index for Industrial Workers.

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