India to Marginally Hike Minimum Wages for Informal Sector Workers from October 1

The Indian government has announced a marginal increase in minimum wages for workers in informal sectors, including construction, mining, and agriculture, effective from October 1. This adjustment is aimed at helping workers cope with rising living costs due to inflation, according to a statement released on Thursday.

The increase comes as part of the government’s semi-annual wage revision, which is linked to the Consumer Price Index (CPI) for industrial workers. This latest revision is based on a 2.40-point rise in the CPI for industrial workers over a six-month period.

New Wage Rates by Skill Level

Unskilled Workers: The highest wage band for unskilled workers will see a daily minimum wage of ₹783 ($9.36).

Semi-skilled Workers: The minimum wage for semi-skilled workers will be set at ₹868.

Highly Skilled Workers: Highly skilled workers can expect a daily wage of ₹1,035.

These revised wages are expected to provide relief to workers in sectors such as construction, mining, and agriculture, where many are employed informally and are particularly vulnerable to inflation.

Protests Demand Further Wage Increases

Earlier this week, thousands of workers across India took to the streets to demand further wage increases. The protesters also called for the repeal of four labour codes introduced by the government, which they claim favor multinational corporations over workers’ rights. The codes, which consolidate and simplify existing labor laws, have been criticized for reducing workers’ protections in areas like job security, social benefits, and wage calculations.

Biannual Wage Adjustments

The minimum wage in India is revised twice a year, in line with inflationary trends, using a six-month average rise in the CPI for industrial workers. This system ensures that wages keep pace with the cost of living, providing some level of economic security to workers, particularly those employed in informal sectors.

Conclusion

The upcoming wage hike, though modest, will offer some relief to workers in informal sectors who are struggling with the rising cost of living. However, the protests highlight that many workers feel the increases are not enough to address their economic challenges, and they continue to advocate for more substantial reforms.