Strategic masterstroke: PM Modi counters Congress’ promises with festive surprise for workers

New Delhi, Sep 27 (IANS) Congress leader Rahul Gandhi's “Khatakhat” scheme created significant headlines during the Lok Sabha elections, and discussions around it continue to echo on political platforms. After the Lok Sabha elections were over, crowds even gathered outside Congress offices across the country, eager to receive the promised ₹8,500 monthly instalment that was promised under the “Khatakhat” scheme. 

However, Congress leaders have repeatedly explained that they could not fulfil these promises because their government was not in power at the Centre.

Despite this, Congress and various opposition parties are presenting populist promises as they campaign for upcoming Assembly elections in several states. These parties seem to be less concerned about the impact on the government's finances. In this context, Prime Minister Narendra Modi has delivered a strong counter to Congress’ "Khatakhat scheme."

While the public is still waiting for the benefits of Congress' scheme, PM Modi has made a decision that will bring a significant gift to the country’s workers just before Diwali, with monthly payments of ₹26,000.

While Congress has opened a box of guarantees, PM Modi has made a masterstroke. The Modi government has amended the Variable Dearness Allowance (VDA) for workers, announcing an increase in the minimum wage to ₹1,035 per day.

The government has made a substantial increase in minimum wage rates, aiming to help workers cope with rising living costs. For unskilled workers in Sector A, the minimum wage has been set at ₹783 per day, amounting to ₹20,358 per month.

For semi-skilled workers, the minimum wage is now ₹868 per day, leading to monthly earnings of ₹22,568. Skilled workers, such as clerks or those performing unarmed tasks, will earn a minimum wage of ₹954 per day, which translates to ₹24,804 per month.

Highly skilled workers will receive ₹1,035 per day, totalling ₹26,910 per month. This new minimum wage rate is set to be implemented with the VDA amendment.

These minimum wage rates will take effect from October 1, and the government has also decided that workers will start receiving the benefits retroactively from April 2024, meaning any pending amounts will be paid from that month. This amendment was also made in April earlier this year.