India revises minimum wages via Variable Dearness Allowance

The Indian central government has revised the Variable Dearness Allowance (VDA), resulting in increased minimum wage rates for various worker categories effective October 1. The adjustment is tied to the Consumer Price Index for Industrial Workers (CPI-IW) and is intended to protect workers against inflation.

The revised rates apply to workers in scheduled employments under the central sphere, including sectors such as construction, agriculture, loading and unloading, sweeping and cleaning, and watch and ward duties. These central rates serve as benchmarks, though state-specific employments may still be governed by independent state notifications.

In the construction and maintenance sector, daily wages vary by skill level and geographical classification (Areas A, B, and C). For example, skilled or clerical workers in Area A will receive a daily rate of ₹1,111, while unskilled workers in the same area will receive ₹840. Agricultural workers also receive updated rates based on these classifications.