J&K Government Revises Minimum Wages Across Skill Categories to Curb Inflation Impact
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The Jammu and Kashmir Government has revised the minimum wages for workers across all skill categories in order to mitigate the impact of rising inflation and increasing cost-of-living pressures. The announcement was made in the Legislative Assembly while responding to a question raised by legislator Ali Mohammad Dar, highlighting the government’s commitment to protecting the interests of workers, particularly those employed in the unorganised sector.
The government clarified that the wage revision has been carried out in accordance with notifications issued by the Ministry of Labour and Employment, Government of India, through the office of the Chief Labour Commissioner (Central). These revisions have been implemented under the provisions of the Minimum Wages Act, 1948, and apply uniformly to unskilled, semi-skilled, skilled, and highly skilled workers engaged in scheduled employments.
The upward revision in wages is primarily based on adjustments in the Variable Dearness Allowance (VDA), which is directly linked to the Consumer Price Index for Industrial Workers (CPI-IW). Since CPI-IW reflects changes in retail prices affecting industrial workers, the revision mechanism ensures that wages are periodically updated to neutralize the adverse effects of inflation. According to official information, the revised wage rates came into effect from 1 October 2024 and are aimed at safeguarding workers’ real income against inflationary trends.
The Jammu and Kashmir Government further informed the Assembly that the Code on Wages, 2019, has now come into force across the country, including in the Union Territory of Jammu and Kashmir. This landmark labour reform legislation subsumes four major labour laws, including the Minimum Wages Act, and introduces the concept of a national floor wage. The floor wage serves as the baseline below which no state or union territory can fix minimum wages, while also strengthening the framework for periodic wage revisions based on socio-economic conditions.
From an examination point of view, this development is important as it connects labour welfare, inflation control, and economic justice. The revised wage structure under the Minimum Wages Act will remain operative till October 2027, providing medium-term wage stability for workers. For competitive exams such as UPSC, JKSSB, SSC, and State PCS, this issue is relevant under topics like labour laws, wage policy, inflation, CPI-IW, Variable Dearness Allowance, and recent labour code reforms in India.
The revision of minimum wages in Jammu and Kashmir reflects a broader national effort to balance economic growth with social protection, ensuring that workers are not disproportionately affected by rising prices and changing economic conditions.