SATURDAY, 19 SEPTEMBER 2026

Minimum wage revision slammed but GCCI pleased with exercise

PANAJI

The much delayed revision of minimum wages for skilled and unskilled workers in the State of Goa notified by the State government last week has come in for some harsh critique from both sides -- labour unions as well as industry bodies.

While the most prominent trade union body of the State -- All India Trade Union Congress (AITUC) -- has slammed it as unscientific, unjustified and unfair, representative bodies of industry were less harsh with their criticism, cautiously terming the increase as the highest in the western region of the country and with potential to adversely impact many industries.

According to AITUC's Christopher Fonseca, the exercise of revising minimum wages got delayed for inexplicable reasons and the approximately Rs 100 increase in the minimum daily wage does not take into account the astronomically rising inflation in prices of essentials.

"It is unscientific, unjustified and unfair. It fails to take into account consideration the unprecedented escalation in prices of food, clothing and shelter,” Fonseca said, even as he slammed the exercise for the irrational classification of various skill sets.

Toiling workers are struggling to provide for their families amidst rising prices of basic necessities like water, electricity, transport and cooking gas. A worker with a family to provide for of himself, wife and two children is unable to live a decent life with the earnings, he added.

The State government which delayed the exercise for nearly a year but finally notified the hike in minimum daily wages last week has mandated payment of Rs 407 a day for the unskilled worker, Rs 468 for the semi-skilled and Rs 523 for the skilled worker. The hike on an average was Rs 100 more than the previously notified wages.

All the three categories are in addition mandated to be paid a Variable Dearness Allowance (VDA) of Rs 105, according tot he notificiation.

Previously the minimum wage was Rs 307 for the unskilled workers Rs 368 for semi-skilled and Rs 423 for the skilled. These rates were last revised in 2016.

On the side of the industry, the Goa Small Industries Association may not have outrightly criticised the government's move to hike the minimum wage but its chief Anirudh Dempo more than indicated dissatisfaction by pointing out that the quantum of the hike was the highest among States in the country's western region.

GSIA's Dempo said, it will certainly be celebrated generally but have an adverse impact on economic activity and disrupt the employment scenario.

According to the GSIA chief, the wage for the skilled worker was Rs 432, including VDA but has now been hiked by Rs 80 which will impact small and labour-intensive industry and employers.

It makes the minimum wage in Goa the highest in the region thus impacting the industrial investment climate and giving rise to the fear of potential flight of investment outside the State.

The bigger industry body Goa Chamber of Commerce and Industry (GCCI) however was seemingly pleased with the exercise and termed it a "balanced approach" even as it mentioned that the hike was lower than "expected".

The statement issued by the GCCI quoted prominent industrialist, Srinivas Dempo, who is its current chief as thanking the government for the wide consultations it had with industry before announcing the hike.

"We urge a balanced approach that takes into consideration the concerns of both the workers and the business," Dempo said in the GCCI release.

Of concern to the trade unions is the unexplained rationale of classifying workers with jobs requiring varied skill sets in a single category in the new revised minimum wages regime notified last week.


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