On September 26, the Union administration said it will marginally raise minimum pay for workers in informal industries, including construction, mining, and agriculture, effective October 1. The modification in the variable dearness allowance (VDA) “is intended to assist workers in managing the escalating cost of living,” the statement indicated, referencing the 2.40-point increase in the consumer price index (CPI) for industrial workers.
After the increase, unskilled workers in the upper-most band will get a daily minimum wage of 783 rupees ($9.36), semi-skilled workers 868 rupees, and highly skilled workers 1,035 rupees. Wages are adjusted twice a year, in April and October, to reflect inflation, using the six-month average growth in the Consumer Price Index for industrial workers.
Earlier this week, hundreds of workers protested around the country, demanding wage increases and the repeal of four labour regulations that they claim benefit international firms.
The minimum wage rates are divided into four categories: unskilled, semi-skilled, skilled, and highly skilled, as well as geographical areas (A, B, and C). The new wage rates will help workers in a variety of sectors, including building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agricultural at central sphere institutions.