Variable dearness allowance for 10.5 mn central workers raised

NEW DELHI: The labour ministry on Friday raised the variable dearness allowance, a pay component, for more than 1.5 crore workers in the sectors under the Union government’s jurisdiction by ₹105 to ₹210 a month, effective from April 1 this year.

The increase in variable dearness allowance (VDA) is indexed to the Consumer Price Index for Industrial Workers (CPI-IW), a price index compiled by the labour bureau. The latest hike will automatically also result in an increase in the rate of minimum wages for employees and workers in sectors overseen by the Union government. These sectors include mines, watch and ward, and construction of roads.

In a statement, the labour ministry said the revised allowances will be a “major relief at a time when the country is struggling with the second wave of the Covid-19 pandemic”.

Labour minister Santosh Gangwar said the revision will benefit about 10.5 million workers engaged in various forms of employment in the central sphere across the country.

“This hike in variable dearness allowance will support these workers particularly during the current pandemic,” he said in a statement.

The hikes are administered under the Minimum Wages Act in sectors over which the Centre has jurisdiction through the offices of chief labour commissioners across the country.

“The change in minimum wage will be based on the skill level and the city or town of work,” said D.P.S. Negi, chief, labour commissioner. VDA for industrial workers is akin to dearness allowance enjoyed by permanent government employees.