Dearness Allowance hike update! Variable DA of Central govt employees hiked, know benefits and other details

New Delhi: The Ministry of Labour & Employment has announced a hike in variable dearness allowance for workers in 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.

“At a time when the country is struggling with the second wave of COVID-19 pandemic, in a major relief to different category of workers engaged in various scheduled employments in the central sphere, the Ministry of Labour & Employment, Government of India has notified and revised the rate of Variable Dearness Allowance (VDA) with effect from 1.4.2021,” said an official release.

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

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

Gangwar also mentioned that orders to this effect have been issued by the CLC(C) and it will be implemented with effect from 1st April, 2021.

The rates fixed for scheduled employment in Central sphere are 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.

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.