DA HIKE ALERT! Variable Dearness Allowance INCREASED - Good news for these Central Government employees

The central government has recently hiked the rate of variable dearness allowance (VDA) in order to provide some relief to central government employees amid the second wave of coronavirus pandemic.

According to the information, the dearness hike ranges from Rs 105 to Rs 210 per month and is expected to benefit 1.5 crore workers. The Labour Ministry informed that increased rate of VDA is with effect from April 1, 2021.

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"At a time when the country is struggling with the second wave of COVID-19 pandemic, in a major relief to different category of workers engaged in various scheduled employments in the central sphere, the Ministry of Labour and Employment, Government of India has notified and revised the rate of Variable Dearness Allowance (VDA) with effect from 1.4.2021," it said.

It further said, "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."

The ministry also informed that the variable dearness allowance 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 variable dearness allowance revision.

"The enforcement of Minimum Wages Act in the central sphere is ensured through the inspecting officers of Chief Labour Commissioner (Central) across the country for employees engaged in the scheduled employment in the central sphere," labour ministry added.