The Ministry of Labour and Employment declared on Friday that the variable dearness allowance for more than 1.5 crore central government employees will be increased by Rs 105 to Rs 210 a month. The rise, which will take place on April 1, 2021, will also lead to a hike in the amount of minimum pay for employees and workers in the central region. It will be for designated employment in the central sector and will apply to entities under central government authority, such as railway administration, mines, oil fields, major ports, and any company founded by the central government. These rates apply to both contract and non-contract employees/workers. Chief Labour Commissioner Central (CLC) D P S Negi told PTI that the dearness hike for employees in the central domain varies from Rs 105 to Rs 210 per month. The labour ministry said in a statement that the rate of Variable Dearness Allowance (VDA) has been notified and updated with effect from April 1, 2021.
At a time when the country is grappling with the second phase of the COVID-19 pandemic, this would be a big relief to various categories of employees employed in various scheduled employments in the central sphere, it said. The average Consumer Price Index for Industrial Workers (CPI-IW), a price index generated by the Labour Bureau, is used to update the VDA. The new VDA adjustment was based on the average CPI-IW from July to December 2020. According to Labour Minister Santosh Gangwar, the revision would help around 1.50 crore employees around the country who work in various scheduled jobs in the central sphere. He added that the increase in VDA would help these workers, especially in these pandemic periods. The regulation of the Minimum Wages Act in the central sphere is ensured by the Chief Labour Commissioner's (Central) Inspecting Officers who travel around the country inspecting workers engaging in scheduled employment in the central field or sector.