The minimum wage for central government works for unskilled farm workers was revised upward to Rs 193 per day on April 1, 2014 from Rs 151 three years ago for tier III cities, Parliament was informed today.
In a written reply in the Lok Sabha, Minister for State for Labour Vishnu Deo Sai said that for tier II cities, the per day minimum wage was increased to Rs 195 from Rs 153 in 2011 in unskilled category for farm sector.
Similarly, for metros or tier I cities, it was raised to Rs 215 from Rs 169 in 2011. In construction sector, the minimum wage was revised from Rs 165 to Rs 220 in 2014 for the tier III or C-category areas across the country.
In construction sector, for tier II cities, the minimum wage is Rs 273, up from Rs 205 in 2011. In metros or Class-A areas, it is now Rs 329 compared to Rs 247 in 2011, Sai said.
The minister said that in order to protect minimum wages against inflation, the government mooted the idea of Variable
Dearness Allowance (VDA) as one of the recommendations of Labour Ministers conference held in 1988.
As per practice, the central government revises the minimum wage for works coming under its purview periodically as per the provisions of the Minimum Wage Act 1948, taking into account the rise in Consumer Price Indices (Retail Inflation).
The minister was replying to a question whether the government has made any mechanism to link minimum wages with price rise. Price rise has been an issue for quite sometime and rocked Parliament also.
The price situation has not been good in the past years and the previous government had discussed the issue in Parliament and also passed the resolutions to contain inflation.