Govt revises variable dearness allowances; wage rate to go up with effect from October 1, 2024

The central government has revised the variable dearness allowance for unorganized sector workers, resulting in an increase in monthly wages. The revised rates will be effective from October 1, 2024 and are aimed at helping workers cope with the rising cost of living, the ministry of labour and employment said.

The rates, which are revised twice a year, were last revised in April 2024. The minimum wage rates are categorized based on skill level, unskilled, semi-skilled, skilled, and highly skilled as well as by geographical area as A, B and C.

After revision, minimum wage rates in area “A” for workers in construction, sweeping, cleaning, loading and unloading for unskilled work will be Rs 783 a day or Rs 20,358 per month while for semi-skilled workers it will be Rs 868 a day or Rs 22,568 per month.

For skilled, clerical and watch and wards without arms, the revised wage rate will be Rs 954 a day or Rs 24,804 per month and for highly skilled and watch and ward with arms it will be Rs1,035 a day or Rs 26,910 per month, the ministry said in a statement issued on Thursday.

The central government revises the VDA twice a year, effective from April 1 and October 1, based on the six-month average increase in the consumer price index for industrial workers.