Govt. Confirms Next Minimum Wage Revision Due by 2027, Considers New Allowance
Suhail Khan
Srinagar, Oct 28: The Labour and Employment Department has clarified that the Minimum Wages Act, 1948, mandates a review of minimum wage rates at intervals not exceeding five years.
The last revision for scheduled employments in Jammu and Kashmir was implemented on October 12, 2022. Consequently, the next statutory revision is officially due by October 2027.
In a written reply to MLA Uri, Dr. Sajad Shafi of the Labour and Employment Department outlined the schedule and plans for revising minimum wages in the Union Territory.
The department, in a reply—a copy of which is with Kashmir Convener—clarified the statutory mandate for a quinquennial review. However, the government has already initiated proactive measures to address workers’ welfare by constituting a committee on April 19, 2024, to examine various labor-related issues.
Based on the committee’s preliminary recommendations and deliberations, the Labour & Employment Department has prepared a Vision Document. A key proposal within this document is the introduction of a Variable Dearness Allowance (VDA) as a component of minimum wages.
This proposed VDA is designed to protect workers’ incomes from the steep rise in the cost of living and essential commodities. The department confirmed that this proposal is currently under review, as further detailed in the written reply.
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