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The government on Thursday announced to increase minimum wage rates by revising the Variable Dearness Allowance (VDA), in a bid to help workers cope with the rising cost of living. 

The move will support workers, particularly those in the unorganised sector. 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. Last revision was done in April this year.

The minimum wage rates are categorized based on skill levels —unskilled, semi-skilled, skilled and highly skilled — as well as by geographical area—A, B, and C.

According to the Ministry of Labour and Employment, after revision, minimum wage rates in area “A” for workers in construction, sweeping, cleaning, loading and unloading for unskilled work will be Rs 783 a day (Rs 20,358 per month); for semi-skilled Rs 868 a day (Rs 22,568 per month); for skilled, clerical and watch and wards without arms Rs 954 a day (Rs 24,804 per month); and for highly-skilled and watch and ward with arms Rs 1,035 a day (Rs 26,910 per month)

The 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.

Meanwhile, retail inflation for industrial workers moderated to 2.15 per cent in the month of July, as compared to 7.54 per cent in the same month last year.

The year-on-year inflation for June 2024 was 3.67 per cent as compared to 5.57 per cent in June 2023. The Consumer Price Index-Industrial Workers (CPI-IW) has been steadily declining since February this year and was 3.87 per cent in April 2024, figures compiled by the Labour Ministry showed.

The all-India CPI-IW for July 2024 increased by 1.3 points and stood at 142.7, from 141.4 in June.