Minimum wages revised for Central sphere workers, 1.5 crore crore workers to benefit

Insight Online News

New Delhi, Oct 29 : The Ministry of Labour and Employment on Friday revised the rate of Variable Dearness Allowance (VDA) for central sphere workers noting that the move would benefit 1.5 crore people engaged in various scheduled employments in central sphere across the country.

“At a time when the country is struggling with 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 October 1, 2021,” an official statement said.

The VDA is revised on the basis of average Consumer Price Index for industrial workers (CPI-IW). The average CPI-IW for the months of January to June, 2021 was used for undertaking the latest VDA revision.

The variable dearness allowance in respect of scheduled employment under central sphere is revised twice in a year i.e. 1st April and 1st October by Chief Labour Commissioner (Central).

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 and workers.

The enforcement of Minimum Wages Act in the Central sphere is ensured through the Inspecting Officers of Chief Labour Commissioner (Central) Organization across the country for employees/workers engaged in the scheduled employment in the central sphere.

There are four categories of employees/workers under scheduled employment and rates of minimum wages are fixed area wise.

As per the revised VDA, an unskilled worker engaged in construction or maintenance of roads, runways and building construction would be entitled for a minimum wage of Rs 654 in area A. The wage rates for other categories such as semi-skilled and highly-skilled are higher. The applicable wage rates also vary from one sector to the other.


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