Lok Sabha Question No. 195 (UNSTARRED), answered on 2024-11-25
Subject: Significant Disparities in Minimum Wages Rates
Ministry: LABOUR AND EMPLOYMENT
Asked by: Ms Iqra Choudhary

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

## UNSTARRED QUESTION NO. 195 TO BE ANSWERED ON 25.11.2024

## SIGNIFICANT DISPARITIES IN MINIMUM WAGES RATES

195. MS IQRA CHOUDHARY:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether  the  Government  is  aware  that  there  are  significant disparities in minimum wages rates across the country as current minimum wages rates are insufficient to meet the basic standards of living;
- (b)the manner in which the Government is ensuring that the minimum wages  framework  accounts  for  differences  in  living  standards between urban and rural areas;
- (c)whether the cost of accessing healthcare is taken as a factor for determining  minimum  wages  and  in  the  calculation  for  cost  of living; and
- (d)whether the Government proposes to revise minimum wages rates to reflect rising costs of living, inflation, and regional economic conditions and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE)

(a) & (b): The disparity in minimum wages is attributed to the fact that under the provisions of the Minimum Wages Act, 1948, both the Central  Government  and  the  State  Governments,  as  appropriate Governments, fix, periodically review, and revise the minimum wages of employees employed in the Scheduled Employments under their respective  jurisdictions.  The  minimum  wage  rates  are,  therefore, determined  and  revised according  to the specific  needs  and economic  conditions  of  each  region,  which  results  in  variations across different States and sectors.

The Minimum Wages Act, 1948 provides for the fixation of minimum wages based on cost of living considerations. In order to address the differences in living standards between urban and rural areas, wage rates are adjusted to reflect the regional and sectoral differences as mentioned in classification of Area as Area A, Area B and Area C in the Annexure.

(c): In 1992, the Hon'ble Supreme Court, in a judgment in the case  of  Reptakos  &  Co.  Vs.  its  workers  directed,  inter-alia,  that children's  education,  medical  requirement,  minimum  recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage. Post the Supreme Court verdict, this criterion was added for fixation of minimum wages.

(d): To  address  the  rising  cost  of  living  and  inflation,  the Central Government  revises the Variable Dearness Allowance (V.D.A.)  on  the  basic  rates  of  minimum  wages  every  six  months, effective from 1st April and 1st October of each year, based on the Consumer Price Index for Industrial Workers. This is done to protect minimum  wages  from  inflationary pressures. Latest V.D.A. as applicable from 01.10.2024 is at Annexure.

*                                                                      ******

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (d)  OF  LOK  SABHA  UNSTARRED QUESTION NO 195 FOR 25.11.2024.

## Area wise Rates of Minimum Wages for Scheduled Employments in the Central Sphere as on 01.10.2024

| Sr. No.   | Scheduled Employment   | Category of Workers                                                                                      | Rates of Wages including V.D.A per day (in Rs.)                                                          | Rates of Wages including V.D.A per day (in Rs.)                                                          | Rates of Wages including V.D.A per day (in Rs.)                                                          |
|-----------|------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
|           |                        |                                                                                                          | Area A                                                                                                   | Area B                                                                                                   | Area C                                                                                                   |
| 1.        | Agriculture            | Unskilled                                                                                                | 500                                                                                                      | 457                                                                                                      | 452                                                                                                      |
| 1.        | Agriculture            | Semi- skilled/Unskilled Supervisory                                                                      | 546                                                                                                      | 502                                                                                                      | 462                                                                                                      |
| 1.        | Agriculture            | Skilled/Clerical                                                                                         | 593                                                                                                      | 546                                                                                                      | 501                                                                                                      |
| 1.        | Agriculture            | Highly-skilled                                                                                           | 656                                                                                                      | 611                                                                                                      | 546                                                                                                      |
| 2.        | Sweeping and Cleaning+ | Unskilled                                                                                                | 783                                                                                                      | 655                                                                                                      | 526                                                                                                      |
| 3.        | Watch and Ward         | Without Arms ( Upgraded to skilled with training)                                                        | 954                                                                                                      | 868                                                                                                      | 739                                                                                                      |
| 3.        | Watch and Ward         | With Arms( Upgraded to highly skilled for supervision)                                                   | 1035                                                                                                     | 954                                                                                                      | 868                                                                                                      |
| 4.        | Loading & Unloading#   | Unskilled                                                                                                | 783                                                                                                      | 655                                                                                                      | 526                                                                                                      |
| 5.        | Construction^          | Unskilled                                                                                                | 783                                                                                                      | 655                                                                                                      | 526                                                                                                      |
| 5.        | Construction^          | Semi- skilled/Unskilled Supervisory                                                                      | 868                                                                                                      | 739                                                                                                      | 614                                                                                                      |
| 5.        | Construction^          | Skilled/Clerical                                                                                         | 954                                                                                                      | 868                                                                                                      | 739                                                                                                      |
| 5.        | Construction^          | Highly-skilled                                                                                           | 1035                                                                                                     | 954                                                                                                      | 868                                                                                                      |
| 6.        | Workers engaged in     | 1.Excavation &removal of over burden with 50 meters lead/1.5 meters lift:*                               | 1.Excavation &removal of over burden with 50 meters lead/1.5 meters lift:*                               | 1.Excavation &removal of over burden with 50 meters lead/1.5 meters lift:*                               | 1.Excavation &removal of over burden with 50 meters lead/1.5 meters lift:*                               |
| 6.        | Stone Mines            | (a) Soft Soil                                                                                            | (a) Soft Soil                                                                                            | 530                                                                                                      | 530                                                                                                      |
| 6.        | for Stone              | (b) Soft Soil with Rock                                                                                  | (b) Soft Soil with Rock                                                                                  | 795                                                                                                      | 795                                                                                                      |
| 6.        | Breaking and           | (c) Rock                                                                                                 | (c) Rock                                                                                                 | 1053                                                                                                     | 1053                                                                                                     |
| 6.        | Stone Crushing         | 2. Removal and Staking of rejected stones                                                                | 2. Removal and Staking of rejected stones                                                                | 426                                                                                                      | 426                                                                                                      |
| 6.        |                        | with 50 metres lead/1.5metres lift* 3. Stone breaking or Stone Crushing for the stone size of category** | with 50 metres lead/1.5metres lift* 3. Stone breaking or Stone Crushing for the stone size of category** | with 50 metres lead/1.5metres lift* 3. Stone breaking or Stone Crushing for the stone size of category** | with 50 metres lead/1.5metres lift* 3. Stone breaking or Stone Crushing for the stone size of category** |
| 6.        |                        | (a) 1.0 inch to 1.5 inches                                                                               | (a) 1.0 inch to 1.5 inches                                                                               | 3232                                                                                                     | 3232                                                                                                     |
| 6.        |                        | (b) Above 1.5 Inches to 3.0 Inches                                                                       | (b) Above 1.5 Inches to 3.0 Inches                                                                       | 2764                                                                                                     | 2764                                                                                                     |
| 6.        |                        | (c) Above 3.0 Inches to 5 Inches                                                                         | (c) Above 3.0 Inches to 5 Inches                                                                         | 1623                                                                                                     | 1623                                                                                                     |
| 6.        |                        | (d) Above 5.0 Inches                                                                                     | (d) Above 5.0 Inches                                                                                     | 1334                                                                                                     | 1334                                                                                                     |
| 7.        | Non - Coal Mines$      |                                                                                                          |                                                                                                          | Above Ground {Rates of Wages including V.D.A per day (in Rs.)}                                           | Below Ground {Rates of Wages including V.D.A per day (in Rs.)}                                           |
| 7.        |                        | Unskilled                                                                                                | Unskilled                                                                                                | 526                                                                                                      | 655                                                                                                      |
| 7.        |                        | Semi-skilled/Unskilled Supervisory                                                                       | Semi-skilled/Unskilled Supervisory                                                                       | 655                                                                                                      | 783                                                                                                      |
| 7.        |                        | Skilled/Clerical                                                                                         | Skilled/Clerical                                                                                         | 783                                                                                                      | 912                                                                                                      |
| 7.        |                        | Highly-skilled                                                                                           | Highly-skilled                                                                                           | 912                                                                                                      | 1020                                                                                                     |

+ Employees engaged in the employment of Sweeping and Cleaning excluding Activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993.

# Employees engaged in the employment of Loading and Unloading in (i) Goods Sheds, Parcel Offices of Railways; (ii) Other Goods Sheds, Godowns, Warehouses and other similar employments; (iii) Docks and  Ports;  and  (iv)  Passengers  Goods  and  Cargo  Carried  out  at  Airports  (Both  International  and Domestic).

^ Employees engaged in the employment of construction or maintenance of Roads or Runways or in Building  Operations  including  laying  down  Underground  Electric,  Wireless,  Radio,  Television, Telephone, Telegraph and Overseas Communication Cables and similar other Underground Cabling Work, Electric Lines, Water Supply Lines and Sewerage Pipe Lines.

$ Employees engaged in the employment of Gypsum Mines, Barytes Mines, Bauxite Mines, Manganese Mines, China Clay Mines, Kyanite Mines, Copper Mines, Clay Mines, Magnesite Mines, White Clay Mines,  Stone  Mines,  Steatite  Mines  (including  the  mines  producing  Soap  Stones  and  Talc),  Ochre Mines,  Asbestos  Mines,  Fire  Clay  Mines,  Chromite  Mines,  Quartzite  Mines,  Quartz  Mines,  Silica Mines, Graphite Mines, Felspar Mines, Laterite Mines, Dolomite Mines, Red Oxide Mines, Wolfram Mines, Iron Ore Mines, Granite Mines, Rock Phosphate Mines, Hematite Mines, Marble and Calcite Mines, Uranium Mines, Mica Mines, Lignite Mines, Gravel Mines, Slate and Magnetite Mines.

(Contd/-)

| AREA - 'A'        | AREA - 'A'   | AREA - 'A'           | AREA - 'A'   | AREA - 'A'        | AREA - 'A'   |
|-------------------|--------------|----------------------|--------------|-------------------|--------------|
| Ahmedabad         | (UA)         | Hyderabad            | (UA)         | Faridabad complex |              |
| Bangaluru         | (UA)         | Kanpur               | (UA)         | Ghaziabad         |              |
| Kolkata           | (UA)         | Lucknow              | (UA)         | Gurgaon           |              |
| Delhi             | (UA)         | Chennai              | (UA)         | Noida             |              |
| Greater Mumbai    | (UA)         | Nagpur               | (UA)         | Secunderabad      |              |
| Navi Mumbai       |              | Pune                 | (UA)         |                   |              |
| AREA - 'B'        | AREA - 'B'   | AREA - 'B'           | AREA - 'B'   | AREA - 'B'        | AREA - 'B'   |
| Agra              | (UA)         | Gwalior              | (UA)         | Port Blair        | (UA)         |
| Ajmer             | (UA)         | Hubli-Dharwad        | (M. Corpn)   | Puducherry        | (UA)         |
| Aligarh           | (UA)         | Indore               | (UA)         | Raipur            | (UA)         |
| Allahabad         | (UA)         | Jabalpur             | (UA)         | Raurkela          | (UA)         |
| Amravati          | (M.Corpn)    | Jaipur               | (M.Corpn)    | Rajkot            | (UA)         |
| Amritsar          | (UA)         | Jalandhar            | (UA)         | Ranchi            | (UA)         |
| Asansol           | (UA)         | Jalandhar-Cantt.     | (UA)         | Saharanpur        | (M.Corpn)    |
| Aurangabad        | (UA)         | Jammu                | (UA)         | Salem             | (UA)         |
| Bareilly          | (UA)         | Jamnagar             | (UA)         | Sangli            | (UA)         |
| Belgaum           | (UA)         | Jamshedpur           | (UA)         | Shillong          |              |
| Bhavnagar         | (UA)         | Jhansi               | (UA)         | Siliguri          | (UA)         |
| Bhiwandi          | (UA)         | Jodhpur              | (UA)         | Solapur           | (M.Corpn)    |
| Bhopal            | (UA)         | Kannur               | (UA)         | Srinagar          | (UA)         |
| Bhubaneshwar      | (UA)         | Kochi                | (UA)         | Surat             | (UA)         |
| Bikaner           | (M.Corpn)    | Kolhapur             | (UA)         | Thiruvanantapuram | (UA)         |
| Bokaro Steel City | (UA)         | Kollam               | (UA)         | Thrissur          | (UA)         |
| Chandigarh        | (UA)         | Kota                 | (M.Corpn)    | Tiruchirappalli   | (UA)         |
| Coimbatore        | (UA)         | Kozhikode            | (UA)         | Tiruppur          | (UA)         |
| Cuttack           | (UA)         | Ludhiana             | (M.Corpn)    | Ujjain            | (M.Corpn)    |
| Dehradun          | (UA)         | Madurai              | (UA)         | Vadodara          | (UA)         |
| Dhanbad           | (UA)         | Malappuram           | (UA)         | Varanasi          | (UA)         |
| Durgapur          | (UA)         | Malegaon             | (UA)         | Vasai- Virar City | (M.Corpn)    |
| Durg-Bhilai Nagar | (UA)         | Mangalore            | (UA)         | Vijayawada        | (UA)         |
| Erode             | (UA)         | Meerut               | (UA)         | Vishakhapatnam    | (M.Corpn)    |
| Firozabad         |              | Moradabad            | (M. Corpn)   | Warangal          | (UA)         |
| Goa               |              | Mysore               | (UA)         | Gorakhpur         | (UA)         |
| NandedWaghala     | (M. Corpn)   | GreaterVisakhapatnam | (M.Corpn)    | Nasik             | (UA)         |
| Gulbarga          | (UA)         | Nellore              | (UA)         | Guntur            | (UA)         |
| Panchkula         | (UA)         | Guwahati             | (UA)         | Patna             | (UA)         |

Area 'C' will comprise all areas not mentioned in this list.

NB : U.A. stands for Urban Agglomeration.

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