Variable Dearness Allowance hike to benefit more than 15 million employees

Variable Dearness Allowance hike to benefit more than 15 million employees
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The Ministry of Labour & Employment has announced an increase in variable dearness allowance (VDA). This hike will be from Rs 105 to Rs 210 per month.

The hike will be effective from April 1, 2021. It will also lead to an increase in the rate of minimum wages for more than 15 million central employees.

The Variable Dearness Allowance is revised on the basis of the average Consumer Price Index for Industrial Workers (CPI-IW). It is a price index compiled by the Labour Bureau.

As per the ministry, it will be applicable to the establishments under the authority of the central government. These may range from railway administration, mines, oil fields, etc. The rates are equally applicable to contract and casual workers.

Moreover, the average CPI-IW for July to December 2020 was used for undertaking the latest VDA revision.

This will benefit about 1.50 crore workers who are in various scheduled employments in central sphere across India.

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