Good News for Workers Minimum Wage Hike Announced: To help workers manage the increasing cost of living, a new support measure will be introduced to lift the minimum wage from 1 October 2024. This amended form of minimum wages act in 1948 is done to legally short out the issues arises due to inflation and cost of living. According to the revised new rules, the minimum wage could be ₹1,035 per day. Especially unskilled labor Minimum wage of Sector A ₹783 per day which is approximately ₹20,358 per month. The daily and monthly wage for semi-skilled workers is ₹868 a day or ₹22,568 every month.
A wage of ₹954 per day (₹24,804 per month) will apply for skilled workers and clerical staff, while a wage of ₹1,035 per day (₹26,910 per month) is prescribed for highly-skilled workers and armed guards. This hike in base rate has been worked out keeping in mind the overall raise of 2.40 per cent in the Consumer Price Index (CPI) numbers also affirms that the Government appreciates all situations where their workers may find it hard to earn money due to tough economic conditions.
How to calculate minimum wage in India?
India has its same minimum wage and salary structure as follows: by state, by area or zone (District), by industry, by occupation and for Skill-Level. This allows for a host of choices for the foreign investor to pick and choose from in terms of where to locate their set up.
This complexity is reflected in the nearly 2,000 varieties of unskilled work and over 400 types of jobs for which a minimum legal daily wage per type has been set. The monthly minimum wage calculation includes the variable dearness allowance (VDA) component that keeps inflationary trends in check – i.e., increase or decrease in Consumer Price Index (CPI), and where applicable, house rent allowance (HRA).
October 1, 2024 the Minimum wages for construction and maintenance workers with effect
The new minimum wage will also apply to the workers engaged in construction or maintenance of roads, runways, building operations such as the laying down underground electric, wireless radio, television telephone, telegraph and overseas communication cables and similar other under-ground cabling work etc., electric lines water supply lines and sewerage pipelines.
The following shall be the minimum rates of wages including the basic rates and Variable Dearness Allowance payable w.e.f. 1st October, 2024 to the employees.
| worker Category | Rates of wages including area wise VDA (in Rs) per day | ||
| 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 |
W.E.F Oct 1, 2024 Minimum wages for sweeping and cleaning worker
These rates represent the bare minimum rates of wages as the basic rates and Variable Dearness Allowance for this area w.e.f 01.10.2024 shall be at the following:-
| 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 |
These revised rates of minimum wages shall be activity wise and applicable to all Scheduled Employments where The Employment of Sweeping and Cleaning excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993 are also performed.
Minimum wages for loading and unloading workers of railways, docks, ports etc., effective from October 1, 2024
TD VDA rates: Employees working in loading and unloading to be paid 70 per marketers. Goods sheds, parcel offices of Railways and other goods sheds, godowns, warehouses and other similar establishments except shops, Docks and ports, Passengers goods at an airport (both international a d domestic). The rates of wages (including the basic rates and Variable Dearness Allowance) payable with effect from October 1, 2024 to employees employed in Agriculture will be as under :-
| 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 |
FACT CHECK
Change in Variable Dearness Allowance Leads to Hike in Minimum Wages Rates by Central Govt Firmly, the new wage rates will be implemented from 1 October. The minimum wage rates are divided by skill levels like Unskilled, Semi-skilled, Skilled and Highly skilled; and Geographical Areas A,B,C. Construction, sweeping, cleaning and loading & unloading Rs 783 per day for area A (after revision).
The minimum wage will be 868 rupees a day for semi skilled labor, and 954 rupees a day for skilled, clerical, watch & ward (without arms). A total of 1,035 rupees a day wage has been set for the employees with revised daily wages of Rs.948 including highly skilled workers and watch & ward (with arms).
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