Sri Vijaya Puram: In a move expected to impact thousands of workers across government departments, industrial units, and private establishments, the Lieutenant Governor of the Andaman and Nicobar Islands has formally announced a hike in minimum daily wages across six employment categories. The revised rates, effective from July 1, 2025, come as part of a biannual review mandated under the Minimum Wages Act, 1948.
The updated wage structure shows significant increases across all skill levels. Unskilled workers will now earn ₹647 per day, up from the earlier ₹618, reflecting a 4.7% increase. Semi-skilled and unskilled supervisory staff will receive ₹728, compared to ₹695 previously, an increment of 4.7%. Skilled and clerical employees will now earn ₹851, up from ₹813, marking a 4.6% hike. The highest hike in absolute terms has been recorded in the highly skilled category, which now stands at ₹934 per day, up from ₹892, also a 4.7% rise.
The last revision to minimum wages in the Union Territory was issued on December 27, 2023, via Notification No. 133/2023/F. The current adjustment is based on the average All India Consumer Price Index (CPI) for the six-month period between October 2024 and March 2025. Authorities cited this inflationary data as the primary benchmark for calculating the revised wage levels, a standard practice under Section 5 of the Minimum Wages Act.
This revision will apply to all sectors covered under the six scheduled employments, in addition to various Government Departments, Offices, and Industrial Establishments operating in the Union Territory. Officials have reiterated that all employers must comply with the revised wage structure without delay. Failure to do so will result in punitive action under the provisions of the Minimum Wages Act, 1948, and its associated rules.
While the absolute rupee increase might appear modest to urban observers, for daily wage earners in the islands, many of whom are engaged in physically demanding labor or remote work environments, the increment can significantly influence household budgets and purchasing power. For instance, an unskilled worker stands to earn nearly ₹870 more per month under the revised structure, assuming 26 working days.
Officials have emphasized the importance of enforcement, especially in sectors with informal employment practices where workers are often underpaid or lack formal contracts. The Labour Department has uploaded the complete wage revision order on its official website (www.labour.and.nic.in) for transparency and public access.
This mid-year wage revision is part of the UT Administration’s broader objective to safeguard worker rights, ensure equitable labor conditions, and maintain purchasing parity amid fluctuating market costs. As part of ongoing reforms, the administration also plans to intensify labour inspections and employer sensitization campaigns to ensure seamless implementation.
For employers, the updated rates mean an increase in operational costs, but government officials argue that fair compensation and improved employee morale can yield productivity gains that offset the financial impact.
The Andaman and Nicobar Islands, with its mix of government-led services, tourism-linked private enterprises, and industrial setups, relies heavily on a diverse labour pool ranging from agricultural workers and port handlers to clerical staff and skilled technicians. This revision aims to create a fairer wage ecosystem across this range.
