Revised VDA rates for Central Government Employees
Ministry of Labour & Employment
Rate of Minimum Wages Revised for Central sphere Employees
At a time when the country is struggling with the second wave of COVID-19 pandemic, in a major relief to different category of workers engaged in various scheduled employments in the central sphere, the Ministry of Labour & Employment, Government of India has notified and revised the rate of Variable Dearness Allowance (VDA) with effect from 1.4.2021.
The VDA is revised on the basis of average Consumer Price Index for industrial workers (CPI-IW) a price index compiled by Labour Bureau. The average CPI-IW for the months of July to December 2020 was used for undertaking the latest VDA revision.
Shri Santosh Gangwar, Labour & Employment Minister said “this will benefit about 1.50 crore workers engaged in various scheduled employments in central sphere across the country. This hike in VDA will support these workers particularly in the current pandemic times”.
Shri Gangwar also mentioned that orders to this effect have been issued by the CLC(C) and it will be implemented with effect from 1st April 2021.
Rates of wages for different categories of employees
|Rate of wages including Variable Dearness Allowance Area wise per day (in Rupees)|
|Schedule employment||Category of employees||A||B||C|
|Construction or maintenance of roads or runways or building operations etc.||Unskilled||645||539||431|
|Semi-Skilled/ Unskilled Supervisor||714||609||505|
|Sweeping and Cleaning||–||645||539||431|
|Loading and Unloading workers||–||645||539||431|
|Watch and Ward||Without Arms||784||714||609|
For Mines employees
|Category||Above Ground||Below Ground|
The rates fixed for scheduled employment in the Central sphere are applicable to the establishments under the authority of 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.
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 employment in the central sphere.
Variable Dearness Allowance – VDA
What is VDA (Variable Dearness Allowance) and how does it work?
Employees who are included on the list of the Minimum Wages Act 1948 are eligible for the VDA. The category now includes 40 different types of scheduled jobs. Employees employed in certain occupations, such as mines, oilfields, major ports, and railway administration. The Variable Dearness Allowance is increased twice a year, on April 1st and October 1st, based on the Consumer Price Index.
What is the difference between DA Dearness Allowance and VDA Variable Dearness Allowance?
Regular Central Government employees, including Railways and Armed Forces personnel, receive DA (Dearness Allowance). However, under the Minimum Wages Act 1948, the VDA (Variable Dearness Allowance) is paid to employees working in the unorganised sector.
What Are the Different types of Dearness Allowance?
- Dearness Allowance (DA): Central Govt Employees including Railways and Armed Forces Personnel
- Industrial Dearness Allowance (VDA): Public Sector Employees of Central Government
- Variable Dearness Allowance (IDA): Specified Category Workers under the Minimum Wage Act
What types of occupations are eligible for VDA Revision?
Type 1: The minimum wage rates, including the basic rate and Variable Dearness Allowance, payable to agricultural employees.
Type 2: Employees working in Gypsum Mines, Barytes Mines, Bauxite Mines, Manganese Mines, China Clay Mines, Kyanite Mines, Copper Mines, Clay Mines, Magnesite Mines, White Clay Mines, Stone Mines, Steatite Mines (includes mines producing Soap Stones and Talc), Ochre Mines, Asbestos Mines, Fire Clay Mines, Chromite Mines, Quartzite Mines, Quartz Mines, Silica Mines, Graphite Mines, Felspar Mines, Laterite Mines, Dolomite Mines, Red Oxide Mines, Wolfram Mines Iron Ore Mines, Granite Mines Rock Phosphate Mines, Hematite Mines, Marble, and Calcite Mines, Uranium Mines, Mica Mines, Lignite Mines, Gravel Mines, Slate Mines, and Magnetite Mines.
Type 3: Employees working in the CONSTRUCTION OR MAINTENANCE OF ROADS OR RUNWAYS OR IN BUILDING OPERATIONS INCLUDING LAYING DOWN UNDERGROUND ELECTRIC, WIRELESS, RADIO, TELEVISION, TELEPHONE, TELEGRAPH AND OVERSEAS COMMUNICATION CABLES AND SIMILAR OTHER UNDERGROUND CABLING WORK, ELECTRIC LINES, WATER SUPPLY LINES AND SEWERAGE PIPE LINES.
Type 4: RATES OF [VDA] Variable Dearness Allowance FOR EMPLOYEES EMPLOYED
Type 5: VDA RATES FOR EMPLOYEES IN “Sweeping and Cleaning, except activities forbidden under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993”
Type 6: V.D.A. RATES FOR EMPLOYEES IN THE WATCH AND WARD (with arms)
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