In order to preserve the purchasing power of minimum wage earners in the face of inflationary pressures, the Central Government has instituted a mechanism known as the Variable Dearness Allowance (VDA) based on the Consumer Price Index, which facilitates periodic increases in the minimum wage by adjusting the VDA accordingly. This allowance is subject to biannual revisions, with revisions taking effect on the first day of April and October each year
Minimum wage rates are categorised based on the skill levels (a) unskilled, (b) semi-skilled, (c) skilled, and (d) highly skilled, as well as by geographical areas, designated as Area A, B, and C. The new wage rates will come into effect from October 1, 2024.
The updated Variable Dearness Allowance applicable to workers in sectors such as agriculture, mining, and construction are outlined as follows:
|
Category of Workers |
Revised VDA rates |
||
|
Area A |
Area B |
Area C |
|
|
Unskilled |
167 |
154 |
152 |
|
Semi-Skilled/Unskilled Supervisory |
182 |
167 |
155 |
|
Skilled/Clerical |
198 |
182 |
167 |
|
Highly Skilled |
218 |
204 |
182 |
You can access the new wage rates order released by the Ministry of Labour and Employment on September 25, 2024, here.
