Central sphere workers to get a hike in minimum wage

The hike will benefit 1.5 crore workers and will be effective from October 1

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The Ministry of Labour and Employment has announced major revisions in the rate of variable dearness allowances (VDA) for the central sphere workers. The effective hike in minimum wages would be effective from October 1 and a total of 1.5 crore Indian workers are set to benefit from the move.

The Ministry, in a statement, said that the revision will serve as a major relief to a different category of workers engaged in various scheduled employment. The workers who’d be getting a hike in their minimum wage would be those involved in construction, maintenance of roads, runways, building operations etc.; sweeping and cleaning; loading and unloading; watch and ward; mines and agriculture work.

The revisions in VDA have been made on the basis of average consumer price index for industrial workers (CPI-IW). The price index is compiled by the Labour Bureau, which is an attached office of the Ministry of Labour and Employment.

The fixed rates would be applicable to all the establishments working under the authority of the Central government — railway administration, mines, oil fields, major ports or any corporation established by the Central government.

The VDA is typically revised twice a year, on April 1 and October 1, and this revision will consider the period from January to June, 2021 as per the gazette notification, D P S Negi, Chief Labour Commissioner (Central) said.

The enforcement of the Minimum Wages Act in the Central Sphere would be carried out by inspecting officers of the Chief Labour Commissioner (Central) across the country.

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