New Delhi: The Centre on Thursday hiked the minimum wage or the variable dearness allowance for industrial and farm workers or unorganised sector workers to match the rising cost of living, it said in an official statement. The move comes ahead of the festive season in India and is likely to spread cheer ahead of Diwali.
Effective October 1, 2024, the new minimum wage will be Rs 783 per day for unskilled workers. Semi-skilled workers will earn Rs 868 per day, while skilled, clerical as well as watch and wards who don’t carry arms will be eligible for Rs 954 per day. Highly skilled workers will be eligible for a minimum wage of Rs 1,035 per day.
| S. No. | Skill | Wage (Rs/ day) | Wage (Rs/ month) |
| 1 | Construction, sweeping, cleaning, loading/ unloading | 783 | 20,358 |
| 2 | Semi-skilled | 868 | 22,568 |
| 3 | Skilled, clerical, watch and ward without arms | 954 | 24,804 |
| 4 | Highly skilled, watch and ward with arms | 1035 | 26,910 |
The government notifies VDA changes twice a year which come into effect in April and October. According to the latest Consumer Price Index for Industrial Workers, inflation stood at 2.15 per cent in July compared to 7.54 per cent in the year-ago period.
While fuel and light inflation remained flat year-on-year, pan, supari, tobacco and intoxicants inched up in July. Food and beverages inflation also rose month on month in July. CPI-IW is compiled on a monthly basis from 3187 markets spread across 88 important industrial centres in India.
Why did govt hike minimum wages?
Under the Minimum Wages Act of 1948, the centre as well as state governments change the minimum wage afetr reviewing the cost of living among other factors. The change in minimum wage is likely to benefit the following jobs:
| S. No. | Jobs covered |
| 1 | Construction |
| 2 | Loading/ unloading |
| 3 | Security guards |
| 4 | Cleaners |
| 5 | Housekeeping staff |
| 6 | Miners |
| 7 | Farmers |
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