• Source:JND

DA Hike: The Union government on Thursday raised the Variable Dearness Allowance (VDA) and announced an increase in the minimum wage, especially for workers in the informal sector. The modifications are meant to assist employees cope with rising living costs, the Centre said in a statement.

The new revised minimum wage will take effect on October 1 and will benefit employees in Central Sector enterprises in industries including building construction, loading and unloading, watch and ward, cleaning, mining, sweeping, housekeeping, and agriculture.

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Minimum Wage Rate After Rate Hike

Minimum wage rates are classified based on skill level—unskilled, semi-skilled, skilled, and highly skilled—as well as by geographic area—A, B, and C.

Among the central sector enterprises, employees in sectors like building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture will benefit from the revised wage rates.

Following the revision, the minimum wage rate in Area "A" for unskilled workers in construction, sweeping, cleaning, loading, and unloading will be Rs 783 per day (Rs 20,358 per month), Rs 868 per day (Rs 22,568 per month) for semi-skilled workers, Rs 954 per day (Rs 24,804 per month) for skilled, clerical, and watch and unarmed wards, and Rs 1,035 per day (Rs 26,910 per month) for highly skilled and watch and armed wards.

Government Revises rate twice a year

The central government revises the VDA twice a year, with effect from April 1 and October 1, based on a six-month average increase in the Consumer Price Index of Industrial Workers.

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The rate, which is revised twice a year, was last revised in April 2024. Minimum wage rates are based on skill levels—unskilled, semi-skilled, skilled, and highly skilled—as well as geographic areas A, B, and… C.