The Ministry of Labour & Employment on Friday announced a hike in variable DA (dearness allowance) for more than 1.5 crore workers in the central sphere by ₹105 to ₹210 per month.
In a bid to provide some relief to central government employees amid the second wave of coronavirus pandemic, Centre has recently hiked the rate of variable dearness allowance (VDA). The dearness hike ranges from ₹105 to ₹210 per month. The revised rate of variable dearness allowance or VDA will benefit 1.5 crore workers. The labour ministry said it has notified and increased the rate of DA with effect from April 1, 2021.
The hike, announced on Friday, May 21, effective from April 1, 2021, will also, result in an increase in the rate of minimum wages for over 1.5 crore central government employees and workers.
This increment is applicable 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.
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.
Variable DA is revised on the basis of the average Consumer Price Index for Industrial Workers (CPI-IW). The average CPI-IW for July-December 2020 was factored in for the latest VDA revision, according to the Labour Ministry.
Besides this, the hike is also applicable for establishments under the authority of the central government, railway administration, mines, oil fields, major ports or any corporation established by the central government. The hike in variable DA will also apply to contract and casual employees/workers.
Enforcement of the 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.
