Increase in Minimum Wages

In order to protect the minimum wages against inflation, the Central Government and most of the State Governments/Union Territory Administrations have adopted the system of Variable Dearness Allowance (VDA), revised twice a year effective from 1st April and 1st October on the basis of increase in Consumer Price Index Numbers for Industrial Workers.Under the provisions of the Minimum Wages Act, 1948, both the Central and State Governments are the appropriate Governments to fix and revise the minimum wages in the scheduled employments under their respective jurisdictions.

As per Section 3 (1) (b) of the Minimum Wages Act, 1948, the appropriate Government shall review at such intervals, not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates, if necessary. This information was given by the Minister of State for Labour and Employment Shri Harish Rawat in a written reply in the Lok Sabha yesterday.