Revised Minimum Wage Rate in India ( effective October 1st, 2024 )

Minimum Wage Rate in India
Revised Minimum Wage Rate in India

The revised minimum wage rate in India reflects the government’s commitment to ensuring fair compensation for workers across various sectors. As part of ongoing efforts to address inflation and the rising cost of living, both central and state governments periodically update these wage rates. This revision aims to provide adequate financial support to laborers, particularly in agriculture, construction, and other labor-intensive industries, while promoting social equity and economic stability. By setting appropriate minimum wages, the government seeks to enhance the livelihoods of millions of workers throughout the country.

Minimum Wage Rate in India

The Revised Minimum Wage Rate in India serves as a critical measure to ensure fair compensation for workers across various sectors. This framework is established by both central and state governments, taking into account the diverse economic conditions and cost of living in different regions. The minimum wage rates vary by industry, including agriculture, mining, construction, and services such as sweeping and cleaning, among others. Regular revisions reflect changes in economic circumstances, aiming to protect the livelihoods of workers and promote equitable growth in the labor market. Understanding these rates is essential for both employers and employees to ensure compliance and fair treatment in the workforce.

Minimum Wage Rate in Agriculture

The Central Government of India has revised the Variable Dearness Allowance (VDA) for workers in agriculture based on the Consumer Price Index (CPI) as of June 30, 2024. This adjustment will be implemented from October 1, 2024. The revised rates of VDA and minimum wages vary by worker category and area classification (A, B, C).In India, the minimum wage for agricultural workers varies significantly across states and regions. Here are some key points:

  1. Central Government Rates: The central government establishes minimum wage rates for agricultural workers, which are periodically revised.
  2. State-Specific Rates: Individual states have the authority to set their own minimum wage rates for agricultural workers, which can exceed the central rates. This allows for flexibility based on local economic conditions and cost of living.
  3. Regional Variations: Minimum wage rates may differ based on factors such as the type of agricultural work, the skill level required, and regional economic factors.
  4. Periodic Revisions: Both central and state rates are subject to periodic reviews to ensure they remain relevant and fair, reflecting changes in the cost of living and inflation.

Rates of V.D.A. Area wise per day (in Rupees)

Category of WorkerVDA (Area A)VDA (Area B)VDA (Area C)
Unskilled167154152
Semi-Skilled/Unskilled Supervisory182167155
Skilled/Clerical198182167
Highly Skilled218204182

Minimum Wage Rates in Agriculture

Category of WorkerMinimum Wages (Area A)Minimum Wages (Area B)Minimum Wages (Area C)
Unskilled500 (333 + 167)457 (303 + 154)452 ( 300+152 )
Semi-Skilled/Unskilled Supervisory546 (364 + 182)502 (335 + 167)462 (307 + 155)
Skilled/Clerical593 (395 + 198)546 (364 + 182)501 (334 + 167)
Highly Skilled656 (438 + 218)611 (407 + 204)546 (364 + 142)

Minimum Wage Rate in Mines

In India, minimum wage rates for mine workers are established by both the central and state governments, taking into account the specific type of mining activity and the region in which the work is performed. These rates are periodically updated to reflect fluctuations in the cost of living and prevailing industry standards.

This dual system of regulation ensures that workers receive fair compensation that aligns with their work conditions, local economic factors, and the demands of the mining industry. Variations in wage rates also account for the nature of the work, such as whether it involves underground or surface mining, and the skill level required for different roles within the sector. Regular reviews help maintain wage equity and support the livelihood of workers in this essential industry.

Categories of Mines

CategoryType of Mine
Mineral MinesBarytes Mines, Bauxite Mines, Manganese Mines, Copper Mines, Chromite Mines, Iron Ore Mines, Graphite Mines, Red Oxide Mines, Wolfram Mines, Uranium Mines
Clay MinesGypsum Mines, China Clay Mines, Clay Mines, White Clay Mines, Fire Clay Mines, Ochre Mines, Steatite Mines, Magnesite Mines, Felspar Mines
Stone MinesGranite Mines, Marble and Calcite Mines, Slate Mines, Stone Mines
Sand and Gravel MinesGravel Mines, Silica Mines, Quartz Mines, Quartzite Mines, Laterite Mines, Dolomite Mines
Coal and Lignite MinesLignite Mines, Asbestos Mines

Rates of V.D.A. Area wise per day (in Rupees)

Category of WorkerVDA (Above Ground)VDA (Below Ground)
Unskilled176218
Semi-Skilled/Unskilled Supervisory218260
Skilled/Clerical260302
Highly Skilled302337

Minimum Wage Rates in Mines

Category of WorkerMinimum Wages (Above Ground)Minimum Wages (Below Ground)
Unskilled350 + 176 = 526437 + 218 = 655
Semi-Skilled/Unskilled Supervisory437 + 218 = 655523 + 260 = 783
Skilled/Clerical523 + 260 = 783610 + 302 = 912
Highly Skilled610 + 302 = 912683 + 337 = 1020

Minimum Wage Rate in Construction or Maintenance of Roads or Runways

This section outlines the Variable Dearness Allowance (VDA) rates applicable to workers involved in:

  • Construction or Maintenance of Roads or Runways
  • Building Operations
  • Laying Underground Communication Cables (including electric, wireless, radio, television, telephone, telegraph, and overseas communication cables)
  • Installation of Electric Lines, Water Supply Lines, and Sewerage Pipe Lines

Rates of V.D.A. Area wise per day (in Rupees)

Category of WorkerArea A (Rs.)Area B (Rs.)Area C (Rs.)
Unskilled260218176
Semi-Skilled/Unskilled289245204
Skilled/Clerical317289245
Highly Skilled342317289

Minimum Wage Rates in Construction or Maintenance of Roads or Runways

Category of WorkerArea A (Rs.)Area B (Rs.)Area C (Rs.)
Unskilled523 + 260 = 783437 + 218 = 655350 + 176 = 526
Semi-Skilled/Unskilled579 + 289 = 868494 + 245 = 739410 + 204 = 614
Skilled/Clerical637 + 317 = 954579 + 289 = 868494 + 245 = 739
Highly Skilled693 + 342 = 1035637 + 317 = 954579 + 289 = 868

Minimum Wage Rate in Goods sheds, Parcel Offices

This Variable Dearness Allowance (VDA) rates applicable to employees engaged in loading and unloading activities in various sectors:

  1. Goods Sheds and Parcel Offices of Railways
  2. Other Goods-Sheds, Go-downs, Warehouses, and Similar Employments
  3. Docks and Ports
  4. Passenger and Cargo Operations at Airports (both international and domestic)

Rates of V.D.A. Area wise per day (in Rupees)

AreaRates of V.D.A.
A260
B218
C176

Minimum Wage Rates in Goods sheds, Parcel Offices

AreaBasic Wages (Rs.)V.D.A. (Rs.)Total (Rs.)
A523260783
B437218655
C350176526

Minimum Wage Rates in Sweeping and Cleaning

Rates of V.D.A. for Employees in Sweeping and Cleaning Excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993. In India, minimum wage rates for sweeping and cleaning workers vary significantly by state and region. Here are some key points:

  1. State Variability: Each state has the authority to establish its own minimum wage rates for sweeping and cleaning jobs, which can be influenced by local economic conditions and cost of living.
  2. Categories of Work: The minimum wage may differ based on the specific type of sweeping and cleaning work performed, with distinctions between residential, commercial, and industrial settings.
  3. Periodic Updates: State governments periodically review and revise these wage rates to ensure they remain aligned with inflation and changing economic conditions.
  4. Central Guidelines: While states set their own rates, the central government provides guidelines and recommendations to help inform state decisions.

Rates of V.D.A. Area wise per day (in Rupees)

AreaRates of V.D.A.
A260
B218
C176

Minimum Wage Rates in Sweeping and Cleaning

AreaBasic Wages (Rs.)V.D.A. (Rs.)Total (Rs.)
A523260783
B437218655
C350176526

Minimum Wage Rates in Watch & Ward

This outlines the revised rates of Variable Dearness Allowance (VDA) for employees engaged in “Watch & Ward” services, both with and without arms. The rates are determined based on various factors, including the cost of living, and are applicable across different areas. Effective from October 1, 2024, these adjustments aim to ensure fair compensation for workers in this sector, reflecting the current economic conditions. The VDA is intended to provide a safeguard against inflation, thereby enhancing the livelihood of employees. The following sections detail the VDA rates and the corresponding minimum wages for both categories of watch and ward employees.

Watch & Ward (Without Arms)

Rates of V.D.A. Area wise per day (in Rupees)

AreaRates of V.D.A.
A317
B289
C245

Minimum Wage Rates in Watch & Ward (Without Arms)

AreaBasic Wages (Rs.)V.D.A. (Rs.)Total (Rs.)
A637317954
B579289868
C494245739

Watch & Ward (With Arms)

Rates of V.D.A. Area wise per day (in Rupees)

AreaRates of V.D.A.
A342
B317
C289

Minimum Wage Rates in Watch & Ward (With Arms)

AreaBasic Wages (Rs.)V.D.A. (Rs.)Total (Rs.)
A6933421035
B637317954
C579289868



Minimum Wage Rate in Stone Mines

These rates ensure that workers in stone mines receive adequate compensation for their labor, taking into account the challenging conditions they encounter. Here are some important aspects:

  1. Challenging Work Environment: Stone mining involves physically demanding tasks, often in harsh conditions, which necessitate fair compensation to reflect the risks and efforts involved.
  2. Piece Rate System: Compensation is often structured as a piece rate, allowing workers to earn based on the volume of work completed, which incentivizes productivity while ensuring a basic wage.
  3. Regular Revisions: The rates are periodically revised to account for inflation and changes in living costs, helping to maintain the purchasing power of workers.
  4. Government Oversight: Both central and state governments play a role in setting and enforcing these wage rates, ensuring that workers are not exploited and receive fair pay for their contributions.

Rates of V.D.A. Area wise per day (in Rupees)

Item of WorkVDA Rate (in Rs.)
Excavation & removal of overburden with 50 meters lead/1.5 meters lift:
– Soft Soil179
– Soft Soil with Rock264
– Rock350
Removal and stacking of rejected stones with 50 meters lead/1.5 meters lift:143
Stone breaking or Stone Crushing for the stone size of:
– 1.0 inch to 1.5 inches1,061
– Above 1.5 inches to 3.0 inches907
– Above 3.0 inches to 5.0 inches535
– Above 5.0 inches441

Minimum Wage Rates in Stone Mines

Category of WorkBasic Wages (in Rs.)VDA (in Rs.)Total (in Rs.)
Excavation & removal of overburden with 50 meters lead/1.5 meters lift: per (100 cubic feet) or 2.831 cube meters
– Soft Soil351179530
– Soft Soil with Rock531264795
– Rock7033501,053
Removal and stacking of rejected stones with 50 meters lead/1.5 meters lift: per (100 cubic feet) or 2.831 cube meters283143426
Stone Breaking or Stone Crushing for stone size of: per (200 cubic feet) or 5.662 cube meters
– 1.0 inch to 1.5 inches2,1711,0613,232
– Above 1.5 inches to 3.0 inches1,8579072,764
– Above 3.0 inches to 5.0 inches1,0885351,623
– Above 5.0 inches8934411,334


MINIMUM WAGE CALCULATOR ( STONE MINES )


Area Classifications for Minimum Wage in India

In the context of minimum wage regulations in India, the terms “A,” “B,” and “C” categorize different geographical areas based on their cost of living and economic conditions. This classification helps determine appropriate minimum wage rates for workers in various regions:

Area A:

  • Major metropolitan cities and urban areas with a high cost of living.
  • Minimum wage rates are generally higher to reflect increased living expenses.

Area B:

  • Medium-sized cities and towns with a moderate cost of living.
  • Minimum wage rates are set accordingly to balance living expenses.

Area C:

  • Rural areas and smaller towns where the cost of living is lower.
  • Minimum wage rates in these areas are usually the lowest among the three categories.

These classifications ensure that workers receive fair compensation that reflects the economic conditions of their specific region. If you need more detailed information on the minimum wage rates for a particular area or sector, feel free to ask!

Note:

  • Workers on a minimum guaranteed time rate of wages per day are entitled to receive the time rate of minimum wages along with any applicable special allowances for unskilled categories of above-ground workers, as revised by the Central Government for scheduled employment in stone mines.
  • VDA: Variable Dearness Allowance is rounded off to the next higher rupee.
  • The classifications are based on the January 19, 2017 notification and may be subject to updates.
  • Area A includes major cities with higher living costs, while Areas B and C represent lower-cost regions.

Official Notification: Download

FAQs

What are minimum wage rates?

Minimum wage rates are legally mandated lowest amounts that employers must pay workers for their labor. These rates vary by industry, region, and worker classification.

Who sets the minimum wage rates in India?

Minimum wage rates are set by both the central and state governments. The central government provides baseline rates, while individual states can establish their own rates that may exceed these baselines.

How often are minimum wage rates revised?

Minimum wage rates are periodically revised, typically every few years or in response to significant economic changes, such as inflation or cost of living adjustments.

Do minimum wage rates differ by state?

Yes, minimum wage rates can vary significantly between states in India, reflecting local economic conditions, cost of living, and the nature of the work.

What categories of workers are covered by minimum wage laws?

Minimum wage laws generally cover a wide range of workers, including those in agriculture, construction, mining, and service sectors like sweeping and cleaning.

Are piece rate workers entitled to minimum wages?

Yes, workers paid on a piece rate basis are entitled to receive at least the minimum wage when their earnings from piece rates fall below this threshold.

What protections exist for workers regarding minimum wages?

Workers can file complaints with labor authorities if they are not paid the minimum wage. Labor inspectors are responsible for ensuring compliance with wage laws.

How can workers find out the minimum wage in their area?

Workers can check with local labor offices, government websites, or labor unions for information on minimum wage rates applicable in their region and sector.

What happens if an employer violates minimum wage laws?

Employers found violating minimum wage laws may face penalties, including fines and legal action, and may be required to pay back wages to affected workers.

Are there special provisions for vulnerable workers?

Yes, there are often special provisions to protect vulnerable workers, including women, children, and those employed in hazardous conditions, ensuring they receive fair wages and working conditions.

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