Minimum wage hike from October 1: Who gets more under revised VDA rates?

Workers covered by the Centre’s minimum wage framework will receive higher daily wage rates from October 1, following the latest revision of the Variable Dearness Allowance (VDA).

The revision is linked to changes in the Consumer Price Index for Industrial Workers (CPI-IW) and is intended to provide workers with some protection against the impact of rising prices.

However, the increase does not mean that every Central Government employee will receive a salary hike. The revised rates apply to workers in scheduled employments under the central sphere, including construction, agriculture, loading and unloading, sweeping and cleaning, and watch and ward duties.

Why has the VDA been revised?

The VDA is the inflation-linked portion of minimum wages. The Centre revises it twice a year based on movements in the CPI-IW.

The latest revision has been issued under the Code on Wages, with the updated rates coming into effect from October 1.

The revised minimum wages differ depending on the worker’s skill level and the area in which they work. The central rates are divided into Areas A, B and C.

New minimum wages for construction workers

According to the Economic Times, Construction and maintenance workers will see different minimum daily wage levels depending on their classification.

The highest revised daily rate in this category is ₹1,111 for skilled and clerical workers in Area A.

Agricultural workers also get revised rates

Agricultural workers covered by the central-sphere rates will also receive higher minimum wages following the VDA adjustment.

For unskilled agricultural workers, the revised VDA component alone is ₹204 per day in Area A, ₹188 in Area B and ₹186 in Area C.

Who else is covered?

The October revision also covers other categories of workers employed in scheduled activities under the central sphere.

These include workers involved in sweeping and cleaning, loading and unloading, watch and ward duties, and port and dock work. The VDA-linked rates for these categories have also been revised under the October notification.

The rates serve as central benchmarks. Workers whose employment falls under state-specific minimum wage notifications may instead be covered by the respective state government’s rates.

For workers covered by the central framework, the October 1 revision means the inflation-linked component of their minimum wage has been updated in line with changes in consumer prices.