New Delhi: The Union government on September 26th, 2024, raised the central minimum wages for agricultural and industrial workers, linked to skill levels and sector types, in response to rising prices, according to a notification from the central labour commissioner.

Under the provisions of the Minimum Wages Act, 1948, both central and state governments are empowered to fix, review, and revise the floor wages of workers employed in sectors under their jurisdictions. The revised wage rates will take effect from October 1, 2024.

The central government’s hike in minimum wages will benefit workers engaged in sectors such as building construction, loading and unloading, security services, janitorial work, housekeeping, mining, and agriculture. The last revision of minimum wages occurred in April this year.

Minimum wages, or floor wages, represent the lowest remuneration that employers are legally required to pay workers. This rate cannot be overridden by individual or private contracts.

Following the revision, the minimum wage rates for workers in construction, sweeping, cleaning, and loading & unloading for unskilled work will be ₹783 a day or ₹20,358 per month, whichever is higher, according to the notification.

For semi-skilled workers, the rate has been set at ₹868 a day or ₹22,568 per month, while for skilled, clerical, and watch-and-ward personnel without arms, the wage has been raised to ₹954 a day or ₹24,804 per month.

For highly skilled workers and watch-and-ward personnel with arms, the floor wage will be ₹1,035 a day or ₹26,910 a month.

The government revises these rates twice a year, linking them to the Consumer Price Index for Industrial Workers, which tracks price changes in a basket of goods relevant to the labour force.

BI Bureau