Government Revises Variable Dearness Allowance: Wage Rates to Increase from October 1, 2024

The central government has announced a revision in Variable Dearness Allowance (VDA) for unorganized sector workers, leading to a boost in their monthly wages. This revision will take effect starting October 1, 2024, and is intended to help workers manage the increasing cost of living, as stated by the Ministry of Labour and Employment.

The latest revision in Variable Dearness Allowance reflects the government’s commitment to protecting the earnings of unorganized sector workers from inflation. With the new wage rates becoming effective on October 1, 2024, workers in the unorganized sector will benefit from higher pay, helping them manage their day-to-day expenses more effectively.

Twice-a-Year Revision for Wage Rates

The VDA, which is adjusted twice a year—once in April and again in October—was last revised in April 2024. The new wage rates are categorized based on both skill levels (unskilled, semi-skilled, skilled, and highly skilled) and geographical areas, labeled as A, B, and C.

New Wage Rates Across Categories

Following the revision, the updated minimum wage rates for various categories of workers in Area A are as follows:

• Unskilled Workers (construction, sweeping, cleaning, loading, unloading) will earn Rs 783 per day or Rs 20,358 per month.
• Semi-skilled Workers will receive Rs 868 per day or Rs 22,568 per month.
• Skilled Workers, Clerical Jobs, and Watch and Ward (without arms) will earn Rs 954 per day or Rs 24,804 per month.
• Highly Skilled Workers and Watch and Ward (with arms) will receive Rs 1,035 per day or Rs 26,910 per month.

VDA Linked to CPI for Industrial Workers

The central government revises VDA based on the Consumer Price Index (CPI) for industrial workers. The rates are adjusted according to the six-month average increase in the CPI, ensuring that wages align with inflationary trends. This twice-yearly adjustment is aimed at providing relief to workers by safeguarding their earnings against the rising cost of essential goods and services.