Govt raises minimum wage for workers in unorganised sector

In a significant move to support workers, particularly those employed in the unorganised sector, the central government has announced an increase in minimum wage rates by revising the Variable Dearness Allowance (VDA). This adjustment is aimed at helping workers cope with the rising cost of living.

Workers engaged in various sectors, including building construction, loading and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture within central sphere establishments, will benefit from the revised wage rates. The new wage rates will take effect from October 1, 2024. The last revision was done in April 2024.

The minimum wage rates are categorised based on skill levels—unskilled, semi-skilled, skilled, and highly skilled—as well as by geographical area—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 ₹783 a day (₹20,358 per month) for semi-skilled ₹868 a day (₹22,568 per month) for skilled, clerical and watch and wards without arms ₹954 a day(₹24,804 per month) and for highly skilled and watch and ward with arms ₹1,035 a day(₹26,910 per month)

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.

In a separate development, the ministry of labour and employment signed an agreement with Amazon India to utilise the National Career Service (NCS) portal of the ministry for facilitating posting of available work opportunities at Amazon and its staffing agencies.

This will enable job seekers across India to view such working opportunities and also help Amazon India and its staffing agencies to post job openings and source candidates from the NCS portal. This will also enable jobseekers, who have registered on the NCS portal, to smoothly search and apply for the relevant opportunities available at Amazon.

Amazon is the first e-commerce company to collaborate with the Ministry of Labour and Employment for the NCS portal. This partnership aims to connect aspiring individuals with career prospects that match their skills and qualifications. The jobseekers registered on the NCS portal will be able to explore and apply for a wide variety of job roles across Amazon’s corporate offices and operations network that align with their skills and aspirations.

"The NCS portal is developing into a one-stop platform for accessing employment opportunities across sectors and industries. This portal is a game-changer for young job seekers, offering them various employment-related services under one roof. With our partnership with Amazon, we are expanding job accessibility for India’s youth, empowering them to discover the right roles and build a future filled with opportunities and growth,” says Union Minister of Labour & Employment and Youth Affairs & Sports Mansukh Mandaviya.

“We are in the process of upgrading the NCS portal. The enhanced platform will offer a more user-friendly interface for job seekers, employers, and stakeholders, utilizing advanced technologies like Artificial Intelligence,” he adds.