Dearness Allowance Hike Latest News: The Central Government has revised the price of Variable Dearness Allowance (VDA) with impact from April 1, 2021. Amid the second wave of Covid-19 across the nation, the revised VDA will provide relief to workers engaged in numerous scheduled employments in the central sphere. It should really be noted that the revised VDA is not meant for frequent Central Government Employees, for whom DA hike is pending because January 2021 and anticipated to be announced in June.
Who will advantage from the revised VDA?
Labour and Employment Minister Santosh Gangwar stated in a statement that the revised VDA 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.”
ALSO Study | Dearness Allowance Hike for Central Government Employees: When to anticipate?
Ministry of Labour & Employment stated in its statement, “The rates fixed for scheduled employment in 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.”
Revised VDA prices
How is VDA revised?
According to the Ministry of Labour & Employment, the VDA is revised on the basis of the typical Consumer Price Index for industrial workers (CPI-IW).
CPI-IW is a price tag index compiled by Labour Bureau. For the most recent VDA revision, the typical CPI-IW for the months of July to December 2020 was applied. The Minimum Wages Act is enforced in the Central sphere via the Inspecting Officers of the Chief Labour Commissioner (Central).
The Dearness Allowance hike for Central Government Employees has been delayed due to the Covid-19 pandemic. It is now anticipated that a DA hike of 4 per cent of the standard salary of Central Government Employees may perhaps be announced next month (June 2021).