Government hikes variable dearness allowance: Here’s what it means for central workers

The government had 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 the rate of minimum wages for central sphere employees and workers.

It will be for scheduled employment in the central sphere and applicable to the establishments under the authority of the 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 VDA is revised on the basis of the average Consumer Price Index for Industrial Workers (CPI-IW), a price index compiled by the Labour Bureau. The average CPI-IW for July to December 2020 was used for undertaking the latest VDA revision.

The rates will be equally applicable to the contract and casual employees or workers. The Minimum Wages Act is implemented in the Central Region for employees engaged in scheduled employment in the Central Region through the Inspecting Officers of the Chief Labour Commissioner (Central).