Lok Sabha Question No. 1713 (UNSTARRED), answered on 2025-03-10
Subject: Impact of Non-competitive Wage Rates
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri Gaurav Gogoi

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 1713 TO BE ANSWERED ON 10.03.2025

## IMPACT OF NON-COMPETITIVE WAGE RATES

## 1713. SHRI GAURAV GOGOI:

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

- (a)whether  the  Government  has  assessed  the  impact  of  noncompetitive wage rates on employment, productivity and economic growth in the country, if so, the details thereof;
- (b)the current average wage rate across key sectors compared to global benchmarks, particularly in industries with high informal employment;
- (c)the age-wise breakdown of wage rates across formal and informal sectors and the manner in which they compare to the national minimum wage standards;
- (d)the  steps  being  taken  by  the  Government  to  ensure  fair  and competitive wages, especially for contract and informal workers; and
- (e)whether  the  Government  has  any  plans  to  revise  or  implement policies  to  bridge  wage  disparities  and  enhance  labour  market competitiveness, if so, the details thereof?

## ANSWER

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

(a) to (e): Under the provisions of the Minimum Wages Act 1948, the Central  Government  and  the  State  Governments,  as  appropriate Government,  fix,  review  and  revise  the  minimum  wages  of  the employees  employed  in  the  Scheduled  employments  under  their respective jurisdictions.

Accordingly, the minimum rates of wages in the Scheduled employments  in  the  Central  sphere  were  revised  by  the  Central Government in 2017. Further, in order to take care of the rising prices, the  Central  Government  revises  the  Variable  Dearness  Allowance (V.D.A) on basic rates of minimum wages every six months, effective from 1st April and 1st October of every year on the basis of Consumer Price Index for all scheduled employments in A, B and C areas. Latest V.D.A. as applicable from 01.10.2024 is at Annexure.

The  minimum  wage  rates  are  determined  and  revised according  to  the  specific  needs  and  economic  conditions  of  each region,  which  results  in  variations  across  different  States  and sectors.

Recently the provisions of the Minimum Wages Act, 1948, have been rationalized and subsumed under the Code on Wages, 2019 and  the  components  of  minimum  wages  stipulated  therein  also provide for cost of living allowance. The Code makes minimum wages universally  applicable  across  employments  and  thus  moves  ahead from restrictive applicability of minimum wages limited to scheduled employments as provided for under the Minimum Wages Act, 1948. Further, the Code mandates the Central Government to fix floor wage applicable across the Central and the State sphere and the minimum rates of wages fixed by the appropriate Government shall not be less than the floor wage.

*                                                 *****

## Annexure referred to in reply to part (a) to (e) of Lok Sabha Unstarred Question No.1713 for 10.03.2025.

## 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.)                            |
|-----------|----------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
| Sr. No.   | Scheduled Employment                                                 | Category of Workers                                                        | 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 Stone Mines for Stone Breaking and Stone Crushing | 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.        | Workers engaged in Stone Mines for Stone Breaking and Stone Crushing | (a) Soft Soil                                                              |                                                                            | 530                                                                        |                                                                            |
| 6.        | Workers engaged in Stone Mines for Stone Breaking and Stone Crushing | (b) Soft Soil with Rock                                                    |                                                                            | 795                                                                        |                                                                            |
| 6.        | Workers engaged in Stone Mines for Stone Breaking and Stone Crushing | (c) Rock                                                                   |                                                                            | 1053                                                                       |                                                                            |
| 6.        | Workers engaged in Stone Mines for Stone Breaking and Stone Crushing | 2. Removal and Staking of stones with 50 lead/1.5metres lift*              | rejected metres                                                            | 426                                                                        |                                                                            |
| 6.        |                                                                      | 3. Stone breaking or Stone Crushing for the stone size of category**       | 3. Stone breaking or Stone Crushing for the stone size of category**       | 3. Stone breaking or Stone Crushing for the stone size of category**       | 3. Stone breaking or Stone Crushing for the stone size of category**       |
| 6.        |                                                                      | (a) 1.0 inch to 1.5 inches                                                 |                                                                            | 3232                                                                       |                                                                            |
| 6.        |                                                                      | (b) Above 1.5 Inches to                                                    | 3.0 Inches                                                                 | 2764                                                                       |                                                                            |
| 6.        |                                                                      | (c) Above 3.0 Inches to 5 Inches                                           |                                                                            | 1623                                                                       |                                                                            |
| 6.        |                                                                      | (d) Above 5.0 Inches                                                       |                                                                            | 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.        | Non-coal Mines $                                                     | Unskilled                                                                  |                                                                            | 526                                                                        | 655                                                                        |
| 7.        | Non-coal Mines $                                                     | Semi-skilled/Unskilled                                                     | Supervisory                                                                | 655                                                                        | 783                                                                        |
| 7.        | Non-coal Mines $                                                     | Skilled/Clerical                                                           |                                                                            | 783                                                                        | 912                                                                        |
| 7.        | Non-coal Mines $                                                     | Highly-skilled                                                             |                                                                            | 912                                                                        | 1020                                                                       |

*Per 2.831 cubic meters or 100 cubic feet

** Per truck load of 5.662 cubic meters or 200 cubic feet

+ 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/-)

## Classification of Area

| 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.

******