The government on Friday revised the rate of variable dearness allowance for 1.5 crore central sphere workers. The DA hike will result in an increase in the minimum wages for central sphere employees and workers.
The revised rate of variable dearness allowance will be effective from October 1.
“At a time when the country is struggling with COVID-19 pandemic, in a major relief to a different category of workers engaged in various scheduled employments in the central sphere, the Ministry of Labour & Employment has notified and revised the rate of Variable Dearness Allowance [VDA] with effect from October 1, 2021,” a statement from the ministry said.
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 (an attached office of the Ministry of Labour & Employment).
The average CPI-IW for the months of January to June 2021 was used for undertaking the latest VDA revision.
The rates fixed for scheduled employments in the Central sphere are 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 and workers.
Chief Labour Commissioner (Central) FPS Negi said that the minimum wages (VDA) in respect of scheduled employment under the central sphere is revised twice in a year i.e. April 1 and October 1 on the basis of Consumer Price Index for industrial workers released by the Labour Bureau, an attached office of Ministry of Labour and Employment. Further, the period under consideration for this order is from January to June 2021 as per the Gazette Notification.
The enforcement of the Minimum Wages Act in the Central sphere is ensured through the Inspecting Officers of Chief Labour Commissioner (Central) Organization across the country for employees and workers engaged in the scheduled employments in the central sphere.
