7th Pay Commission Update: Govt Hikes Variable DA. Here’s All About The Latest Raise

The hike will result in an increase in the rate of minimum wages for employees and workers sectors including mines, watch and ward, construction of roads, oil fields, major ports or any corporation established by the central government. These rates are equally applicable to contract and casual employees/workers.

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New Delhi: Here’s a good news for central government employees amid the gloomy wave of Covid-19. The government has revised the rate of Variable Dearness Allowance (VDA) with effect from 1 April 2021. However, the revised VDA is not applicable for regular central government employees.

Who are beneficiaries of the latest hike in variable Dearness Allowance (DA)?

As per the labour minister Santosh Gangwar, 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," news agency PTI quoted Santosh Gangwar. Also Read: New 'Taxpayer Friendly' ITR E-Filing Portal: Know The Benefits, Features Here

What is the process of revisision of VDA?

According to the Ministry of Labour & Employment, the VDA is revised on the basis of the average Consumer Price Index for Industrial Workers (CPI-IW). CPI-IW is a price index compiled by Labour Bureau. In order to process the latest hike, average CPI-IW for July to December 2020 has been used as a benchmark.

What’s the VDA hike announced?

The Union Ministry of Labour and Employment has announced a hike in variable dearness allowance (DA) from Rs105 per month to Rs210 per month for central government employees. Talking to PTI, Chief Labour Commissioner Central (CLC) D P S Negi said, "the dearness hike ranges from Rs105 per month to Rs210 for workers in the central sphere".

Which sectors will benefit from the revised VDA rates?

It is to be noted that the hike will result in an increase in the rate of minimum wages for employees and workers in sectors overseen by the Union government. These sectors include mines, watch and ward, construction of roads, oil fields, major ports or any corporation established by the central government. These rates are equally applicable to contract and casual employees/workers.