The Union government on Thursday announced a hike in minimum wage rates for workers up to ₹1,035 a day by revising variable dearness allowance.

This adjustment is aimed at helping workers cope with the rising cost of living, a labour ministry statement said.

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 workers, the minimum wage rate will be ₹868 a day (₹22,568 per month) and for skilled, clerical and watch and wards without arms at ₹954 a day (₹24,804 per month). The minimum wage rate for highly skilled and watch and ward with arms will be ₹1,035 a day (₹26,910 per month).

The new wage rates will take effect from October 1. 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.

In a significant move to support workers, particularly those in the unorganised sector, the central government has announced an increase in minimum wage rates by revising the Variable Dearness Allowance (VDA), the labour ministry statement said.

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 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.