Centre of Indian Trade Unions (CITU) urges the Union Govt to revise the minimum wages to Rs.26000 per month for all unskilled scheduled employments with upward fixation for higher skills in the central sphere immediately. CITU further denounces the revision of only VDA as it does not lead to revision of minimum wages. The Minimum Wages Act 1948 Section 3(b) mandates revision of minimum wages at regular intervals not exceeding 5 years. The last revision was done in 2017 January, where by the minimum wages revision is pending since January 2022 with the last revision done 7 years back. The Union Govt is abdicating its mandatory duty to revise the minimum wages since 2 years though it was to be mandatorily revised by 2022 January.

The recent notification increasing the VDA dated 25.9.2024 effective from 1.10.2024 is only biennial revision of VDA based on 2.40 points increase in the consumer price index for industrial workers as on 30.6.2024 which is also a truncated one and  does not fully reflect the price rise that the workers are facing. It is wrongly reported in some section of media as revision of minimum wages, which is misleading one. Further even the increase in VDA is to the tune of Rs.4 to Rs.7 per day varying for different skills and areas across the employments compared to the revision of VDA effective from 1.4.2024 based on 13.37 points increase in CPI (IW).

This hike in VDA in no way commensurate the price rise industrial workers are facing. With the minimum wages revision pending since 2 years the plight of workers with the present crisis of living cost is unbearable to which the pro corporate BJP led NDA Govt is blind. The annual survey of industries 2020-21, factories division reveal that the share of wages in net value addition has come down from 15.67% in 2017-18 to 15.13% in 2021-22 while the share of net profit has increased from 46.86% to 54.37% during the same period.

The number of contract workers is ever increasing with the unrestricted out sourcing spree in the central sphere, whose number has increased to 32.58 lakh in 2023-24 from 30 lakh in 2022-23,who are the worst affected due to the non revision of minimum wages in the central sphere.

Issued by
(Tapan Sen)
General Secretary