Diwali Gift: Govt Hikes Variable Dearness Allowance, Effective From October 1; How To Calculate DA On Salary?

7th Pay Commission: An early Diwali gift has been announced by the Indian government that will improve the living conditions of individuals in India. In a major good news for support workers and employees in the unorganized sector, the central government revised the minimum wage pay scale by hiking the variable dearness allowance. The new changes will come into effect from October 1, 2024.

In its statement, on September 26, the Labour & Employment Ministry said, "This adjustment is aimed at helping workers cope with the rising cost of living."

As per the statement, workers engaged in various sectors including building construction, loading, and unloading, watch and ward, sweeping, cleaning, housekeeping, mining, and agriculture within central sphere establishment, will benefit from the revised wage rates."

The new minimum wage rates are categorized based on skill levels and geographical area. There are unskilled, semi-skilled, skilled, and highly skilled categories, while the geographical area is divided into three category such as A, B, and C.

Here's how to calculate the latest DA hike on the salary:

Data from the ministry showed that wage rates in area 'A' for workers in construction, sweeping, cleaning, loading and unloading for unskilled work will be Rs 783 per day which will make the monthly payment to Rs 20,358, while for semi-skilled employees the per day pay would be Rs 868 taking the monthly salary to Rs 22,568.

Further, the salary is higher for skilled employees like clerical and watch & wars without arms who will receive about Rs 954 per day, and their overall package would be Rs 24,804 per month.

The highest hike is made for highly skilled and watch & ward with arms workers who are going to receive Rs 1,035 per day, with their monthly package cumulatively at Rs 26,910 per month.

It needs to be noted that the central government revises variable dearness allowance twice every year. The revision is made from April 1st and October 1st of every year, based on the six-month average increase in the Consumer Price Index for industrial workers.