Labour ministry hikes variable dearness allowance for workers in central sphere

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New Delhi: The Ministry of Labour & Employment on Friday announced a hike in variable dearness allowance for more than 1.5 crore workers in the central sphere by Rs 105 to Rs 210 per month.

The hike, which will be effective from April 1, 2021, will also result in an increase in rate of minimum wages for central sphere employees and workers.

It will be for scheduled employment in central sphere and applicable to the establishments under the authority of central government, railway administration, mines, oil fields, major ports or any corporation established by the central government. These rates are equally applicable to contract and casual employees/workers.

Talking to PTI, Chief Labour Commissioner Central (CLC) D P S Negi said, “the dearness hike ranges from Rs 105 to Rs 210 per month for workers in the central sphere”.

In a statement, the labour ministry said it has notified and revised the rate of Variable Dearness Allowance (VDA) with effect from April 1, 2021. This will be a major relief to different category of workers engaged in various scheduled employments in the central sphere at a time when the country is struggling with the second wave of the Covid-19 pandemic, it added.

The VDA is revised on the basis of average Consumer Price Index for Industrial Workers (CPI-IW), a price index compiled by the Labour Bureau. The average CPI-IW for of July to December 2020 was used for undertaking the latest VDA revision.

Labour Minister Santosh Gangwar said the revision will benefit about 1.50 crore workers engaged in various scheduled employments in the central sphere across the country. “This hike in VDA will support these workers particularly in the current pandemic times”.

The enforcement of Minimum Wages Act in the central sphere is ensured through the Inspecting Officers of Chief Labour Commissioner (Central) across the country for employees engaged in the scheduled employment in the central sphere.