“At a time when the country is battling the COVID-19 pandemic, in a major relief to various categories of workers engaged in various scheduled employment in the Central Sector, the Ministry of Labor and Employment has notified and revised the rate of Variable Dearness Allowance . (VDA) with effect from October 1, 2021,” a statement from the ministry said.
The VDA is revised on the basis of the Average Consumer Price Index for Industrial Workers (CPI-IW), a price index compiled by the Labor Bureau (an attached office of the Ministry of Labor and Employment).
Average CPI-IW for the months January to June, 2021 was used to make the latest VDA revision.
Union Labor Minister Bhupendra Yadav said in the statement that this would benefit about 1.5 crore workers engaged in various scheduled employment in the central sector across the country.
These workers are employed in construction, maintenance of roads, runways, building operations etc.; cleaning and cleaning; loading and unloading; Clock and Ward; Mines and Agriculture.
He said that this is in line with the Prime Minister’s vision of “Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayas” and this increase will be effective from October 1, 2021 and extended Diwali greetings to all nation builders.
The rates prescribed for scheduled employment in the Central Sector are applicable to 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 applicable to contract and casual employees/employees equally.
Chief Labor Commissioner (Central) DPS Negi said the VDA in respect of scheduled employment under the central sector is revised twice a year – 1 April and 1 October.
Further, the period under consideration for this order is from January to June, 2021 as per the gazette notification.
Enforcement of the Minimum Wages Act in the Central Sector is ensured through the inspecting officers of the Chief Labor Commissioner (Central) Organization throughout the country for the employees/workers engaged in scheduled employment in the Central Sector.