The increase, which will be effective from April 1, 2021, will also increase the minimum wage rate for employees.
There's good news for crores of government workers. The Ministry of Labor and Employment on Friday announced a hike in Variable Dearness Allowance for more than 1.5 crore employees in the central sector. The allowance will be raised by ₹105 to ₹210 per month. The increase, which will be effective from April 1, 2021, will also increase the minimum wage rate for employees.
The government also said that the rates fixed for scheduled employment 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/workers.
The labour ministry has notified and revised the rate of Variable Dearness Allowance with effect from April 1, 2021.
"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," a statement from the ministry read.
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”.
The enforcement of Minimum Wages Act in the Central sphere is ensured through the Inspecting Officers of the Chief Labour Commissioner (Central) across the country for employees engaged in the scheduled employment in the central sphere.
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