Govt hikes variable dearness allowance for 1.5 crore workers in central sector establishments

By: |
October 30, 2021 3:30 AM

Following the revision, an unskilled construction worker in a Metro city like Delhi or Mumbai will now get Rs 17,004 per month, considering he/she works for 26 days in a month, against Rs 16,770 a month earlier.

In April, the VDA was revised by an average of Rs 156 a month. The revised rates are equally applicable to contract and casual employees.In April, the VDA was revised by an average of Rs 156 a month. The revised rates are equally applicable to contract and casual employees.

The government has hiked the variable dearness allowance (VDA) for around 1.5 crore workers, including casual and contract employees working in the central sector establishments such as railways, mines, oil fields and major ports by an average of Rs 208 per month. The latest revision, effective from October 1, is likely to accrue around Rs 1,900 crore benefit to these workers for the next six months, averaging around Rs 312 crore a month.

VDA for such workers are revised twice a year — in April and in October. In April, the VDA was revised by an average of Rs 156 a month. The revised rates are equally applicable to contract and casual employees.

Following the revision, an unskilled construction worker in a Metro city like Delhi or Mumbai will now get Rs 17,004 per month, considering he/she works for 26 days in a month, against Rs 16,770 a month earlier.

VDA is revised on the basis of average consumer price index for industrial workers compiled by the Labour Bureau. The average Consumer Price Index for industrial workers for January to June, 2021, was used for undertaking the latest revision, the labour ministry said. “This (the latest revision) will benefit around 1.5 crore workers engaged in various scheduled employment in the central sphere across the country. This is in line with Prime Minister’s vision of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayas,” said labour minister Bhupender Yadav.

The enforcement of the Minimum Wages Act in the central sphere is ensured via the inspecting officers of Chief Labour Commissioner (Central) Office across the country for employees/workers engaged in the scheduled employment in the central sphere, said DPS Negi, central chief labour commissioner.

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