Revised VDA on Minimum Wages for Construction & Maintenance Workers w.e.f 1st April, 2023

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Revised VDA on Minimum Wages for Construction & Maintenance Workers w.e.f 1st April, 2023

Minimum Wage – Construction/Maintenance of Roads or in Building Operations

Valid in April 2023
Minimum wage with effect from 1 April 2023.
The amounts are in Indian Rupee (₹).

Let Us Look at The Various Definitions of Unskilled, Semi-Skilled, Skilled & Highly Skilled Workers.

(i) Unskilled: An unskilled employee is one who does operations that involve the performance of simple duties, which require the experience of little of no independent judgment or previous experience although familiarity with the occupational environment is necessary. His work may thus require in addition to physical exertion familiarity with variety of articles or goods. (ii) Semi-skilled: A semiskilled worker is one who does work generally of defined routine nature wherein the major requirement is not so much of the judgment, skill and but for proper discharge of duties assigned to him or relatively narrow job and where important decisions made by others. His work is thus limited to the performance of routine operations of limited scope. (iii) Skilled: A skilled employee is one who is capable of working efficiently of exercising considerable independent judgement and of discharging his duties with responsibility. He must possess a thorough and comprehensive knowledge of the trade, craft or industry in which he is employed. (iv) Highly Skilled: A highly skilled worker is one who is capable of working efficiently and supervises efficiently the work of skilled employees.

AREA AND SKILL LEVEL - for Construction & Maintenance Workers w.e.f 1st April, 2023

	Basic per day	VDA per day	Total per day
Area A - Clerical	₹ 637.00	₹ 260.00	₹ 897.00
Area A - Highly Skilled	₹ 639.00	₹ 280.00	₹ 973.00
Area A - Semi-skilled/Unskilled Supervisory	₹ 579.00	₹ 237.00	₹ 816.00
Area A - Skilled/Clerical	₹ 637.00	₹ 260.00	₹ 897.00
Area A - Unskilled	₹ 523.00	₹ 213.00	₹ 736.00
Area B - Clerical	₹ 579.00	₹ 237.00	₹ 816.00
Area B - Highly Skilled	₹ 637.00	₹ 260.00	₹ 897.00
Area B - Semi-skilled/Unskilled Supervisory	₹ 494.00	₹ 201.00	₹ 695.00
Area B - Skilled/Clerical	₹ 579.00	₹ 237.00	₹ 816.00
Area B - Unskilled	₹ 437.00	₹ 179.00	₹ 616.00
Area C - Clerical	₹ 494.00	₹ 201.00	₹ 695.00
Area C - Highly Skilled	₹ 579.00	₹ 237.00	₹ 816.00
Area C - Semi-skilled/Unskilled Supervisory	₹ 410.00	₹ 167.00	₹ 577.00
Area C - Skilled/Clerical	₹ 494.00	₹ 201.00	₹ 695.00
Area C - Unskilled	₹ 350.00	₹ 144.00	₹ 494.00

How many times VDA is revised in a year? VDA is revised periodically twice a year effective from 1st April and 1st October in the Central Sphere. The enforcement of the Minimum Wages Act, 1948 is secured at two levels. In the Central Sphere, the enforcement is secured through the Inspecting officers. What is VDA in minimum wages? The Central Government revises the cost of living allowance called as Variable Dearness Allowance (V.D.A) on basic rates of minimum wages under the Minimum Wages Act, 1948 on the basis of Consumer Price Index for Industrial workers.

CONCLUSION - Code on Wages, 2019 makes minimum wages universally applicable across employments

Minister of State for Labour and Employment, Shri Rameswar Teli in a written reply to a question in Lok Sabha on 20rth arch 2023 informed that the provision of minimum wages under the Minimum Wages Act, 1948 provides for cost of living allowance as a component of minimum wages. Accordingly, the Central Government revises the cost of living allowance called as Variable Dearness Allowance (V.D.A) on basic rates of minimum wages under the Minimum Wages Act, 1948, every six months effective from 1st April and 1st October every year on the basis of Consumer Price Index for Industrial workers to protect the minimum wages against inflation. In the written reply it was stated that 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. Further, 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. As per Section 4 of the Minimum Wages Act, 1948, the minimum rate of wages may consist of: (i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the “cost of living allowance”) ; or (ii) a basic rate of wages with or without the cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concessional rates, where so authorised; or (iii) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any. As the Central Government and the State Governments are appropriate Governments to fix, review and revise the minimum rates of wages in scheduled employments in their respective jurisdictions in terms of section 4 the Act, the minimum rates of wages vary from one jurisdiction to another. The Variable Dearness Allowance (VDA) on basic rates of minimum wages is revised every six months in the Central sphere and it was last revised w.e.f. 01.10.2022. A statement showing increase in the rates of wages on account of increasing V.D.A payable to the employees engaged in the scheduled employments in the Central Sphere is at Annexure. The Government has already undertaken various legislative measures for protection to women workers: The Factories Act, 1948, The Mines Act, 1952, The Maternity Benefit Act, 1961, The Equal Remuneration Act, 1976, The Payment of Wages Act, 1936, The Workmen's Compensation Act, 1923 etc., but there still remains a lot more to be done for them if India is to meet the standards as set out by ILO.

Proprietary blog of Karma Global Tech Management LLC

This blog has been collated and compiled by the internal staff of Karma Global with the knowledge and expertise that they possess, besides adaptation, illustration, derivation, transformation, collection from various sources, for its monthly newsletter Issue 11 of May 2023 and in case of specific or general information or compliance updates for that matter, kindly reach out to the Marketing Team – Kush@karmamgmt.com / yashika@karmamgmt.com

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