The Ministry of Labour and Employment approved a 105 to 210 per month increase in variable dearness allowance for more than 1.5 crore workers in the central sphere on Friday.
This will also lead to an increase in the rate of minimum wages for more than 15 million central sphere employees and workers. The dearness allowance hike will take effect on April 1, 2021, will also increase the rate of minimum wages for employees and workers.
Talking to PTI, Chief Labour Commissioner Central (CLC) D P S Negi said, “the dearness hike ranges from 105 to 210 per month for workers in the central sphere”.
Hike In Variable Dearness Allowance
It will be for scheduled employment in the central sphere and also 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. These rates are equally applicable to contract and casual employees/workers.
This step will also be a huge comfort to a variety of workers who work on varying schedules. The average Consumer Price Index for Industrial Workers (CPI-IW), a price index compiled by the Labor Bureau, is also used to update the VDA.
“The VDA is revised based on average Consumer Price Index for industrial workers (CPI-IW) a price index compiled by Labour Bureau. The average CPI-IW for July to December 2020 was used for undertaking the latest VDA revision,” a statement from the ministry read.
Rate Of Minimum Wages For Central Sphere Employees
Labour Minister Santosh Gangwar also said the revision 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”.
The enforcement of the Minimum Wages Act in the central sphere is ensured through the Inspecting Officers of the Chief Labour Commissioner (Central) across the country for employees engaged in the scheduled employments in the central sphere.