Labour ministry hikes variable dearness allowance for workers in central sphere

In a move aimed at benefiting 1.50 crore central sector employees, the labour ministry on Friday marginally increased the minimum wage of industrial workers employed in the central sphere including in mining and construction activities by revising the variable dearness allowance (VDA). This would lead to Rs 105 to Rs 212 per month increase in wages for workers doing scheduled employment in the central sphere.

The rates fixed for scheduled employment in the central sphere are applicable to the establishments under the authority of the central government, Railway administration, mines, oil fields, major ports or any corporation established by the central government and are equally applicable to contract and casual employees or workers.

The VDA is revised on the basis of average consumer price index for industrial workers (CPI-IW), which is compiled by the Labour Bureau. The average CPI-IW for the months of July to December 2020 have been used for undertaking the latest VDA revision.

“This will benefit about 1.50 crore workers engaged in various scheduled employments in the central sphere across the country. This hike in VDA will support these workers particularly in the current pandemic times,” labour and employment minister Santosh Gangwar said.

The inspecting officers of the chief labour commissioner (Central) are responsible for enforcement of the Minimum Wages Act in the central sphere for employees engaged in the scheduled employment in the central sphere across the country.

The change in minimum wage will be based on skill level and the city or town of work.

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