Government announces revised variable DA rates, which will take effect on October 1, 2021

In a major relief to different categories of workers engaged in various scheduled employments in the central sphere, the Ministry of Labour & Employment, Government of India has notified and revised the rate of Variable Dearness Allowance (VDA) with effect from 1.10.2021.

The VDA is updated based on the average Consumer Price Index for Industrial Workers (CPI-IW), a price index compiled by the Labour Bureau (an attached office of Ministry of Labour & Employment). The latest Variable Dearness Allowance (VDA) revision was based on the average CPI-IW from January to June of 2021.

Shri Bhupender Yadav, Minister of Labour & Employment, Environment, Forest & Climate Change, stated that this will benefit approximately 1.5 crore workers engaged in various scheduled employment in the central sphere across the country, namely (a) construction, maintenance of Roads, Runways, Building operations, etc.; (b) sweeping and cleaning; (c) loading and unloading; (d) watch and ward; (e) mines & (f) agriculture, and that this is in line with Prime Minister’s vision of “Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayas” and this increase will be effective from 1st October, 2021 and wished all the nation builders greetings of Happy Deepavali.

The move will benefit around 1.50 crore workers engaged in various scheduled employments in central sphere across the country. This

hike in Variable Dearness Allowance (VDA) will support these workers particularly in the current pandemic times.

Rates of wages for different categories of employees.

For Mines employees:

The rates fixed for scheduled employment in Central sphere are 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.

Shri D.P.S.Negi, Chief Labour Commissioner (Central) said that the minimum wages (VDA) in respect of scheduled employment under central sphere is revised twice in a year i.e. 1st April and 1st October on the basis of Consumer Price Index for industrial workers released by Labour Bureau, an attached office of Ministry of Labour & Employment.  Further, period under consideration for this order is from January to June, 2021 as per the Gazette Notification.

The enforcement of Minimum Wages Act in the Central sphere is ensured through the Inspecting Officers of Chief Labour Commissioner (Central) Organization across the country for employees/workers engaged in the scheduled employment in the central sphere.