The central government has revised the Variable Dearness Allowance (VDA), which has led to a major increase in the minimum wages of workers in the unorganized sector. These new rates have come into effect from October 1.
Who will be the beneficiary?
According to the Ministry of Labor and Employment, workers working in sectors such as building construction, loading and unloading, security services, cleaning, housekeeping, mining and agriculture will benefit from this revised wage rates. These wage rates will be applicable to workers working in establishments in central sectors.
The ministry said that the new minimum wages have been divided into four categories based on the skill level of the workers – unskilled, semi-skilled, skilled, and highly skilled. Apart from this, they have also been categorized into A, B and C categories according to geographical areas.
Minimum Wage for Construction and Maintenance Workers
The revised minimum wages will apply to workers engaged in construction or maintenance works, including building of roads and runways, building construction and installation of underground facilities such as power, telecom, water and sewer lines.
The new pay rates, which include both basic pay and Variable Dearness Allowance (VDA), are as follows:
Wages for unskilled workers will be ₹783 in Zone A, ₹655 in Zone B and ₹526 in Zone C.
Semi-skilled and supervisory workers will now get ₹868 in Zone A, ₹739 in Zone B and ₹616 in Zone C.
Skilled or clerical workers will be paid ₹954 per day in Zone A, ₹868 in Zone B and ₹739 per day in Zone C.
Minimum wages for highly skilled workers and supervised work
Highly skilled workers will get the highest wages, with rates of ₹1,035 in Zone A, ₹954 in Zone B, and ₹868 in Zone C applicable.
Effective October 1, the revised minimum wages will apply to workers engaged in loading and unloading operations, who are employed in the following sectors:
- Railway goods sheds and parcel offices
- Other goods sheds, godowns, warehouses and similar workplaces
- Ports and docks
- Management of passengers, freight and cargo at domestic and international airports
Minimum wages for watch and ward jobs (without arms):
With effect from October 1, the minimum wages for employees for Watch and Ward (unarmed), which includes Basic Pay and VDA, are as follows:
Zone A: Basic Salary ₹637, VDA ₹317, Total ₹954 per day.
Zone B: Basic Salary ₹579, VDA ₹289, Total ₹868 per day.
Zone C: Basic Salary ₹494, VDA ₹245, Total ₹739 per day.
