Minimum wages protected against inflation

Shri Harish Rawat, Minister of State for Labour and Employment had recently presented the matter of rise in minimum wages in accordance with inflation in the Lok Sabha. He clarified that under the provisions of the Minimum Wages Act, 1948 (the Act), both Central and State Governments are appropriate authorities to fix and revise the minimum wages for scheduled employments covered under their respective jurisdictions. Also, as per Section 3(1)(b) of the Act, the appropriate Government shall review minimum wages within a period not exceeding five years.

Further, he clarified that 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). Under this system, the VDA is to be revised twice a year. This revised VDA will be effective from 1st April and 1st October every year in accordance to the increase in Consumer Price Index Numbers for Industrial Workers.




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