At a time when the country is struggling with COVID-19 pandemic, in a major relief to different categories 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 1.10.2021. 

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The VDA is revised on the basis of average Consumer Price Index for industrial workers (CPI-IW) a price index compiled by Labour Bureau (an attached office of Ministry of Labour & Employment). The average CPI-IW for the months of January to June, 2021 was used for undertaking the latest Variable Dearness Allowance (VDA)  revision.

Bhupender Yadav, Minister of Labour & Employment, Environment, Forest & Climate Change, said that this will benefit around 1.5 crore workers engaged in various scheduled employment in the central sphere across the country i.e. (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 said 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.

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.

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.