New Delhi | Jagran Business Desk: Providing some relief to the central government employees amid the second wave of coronavirus, the government has recently hiked the rate of Variable Dearness Allowance (VDA). Now, the Dearness Allowance hike ranges from 105 to 210 paisa per month. This revised rate of VDA is said to benefit 1.5 crore workers. The hike in the DA will come in effect from April 1, 2021, as per the latest notification by the labour and employment ministry.

"It will be for scheduled employment in the central sphere and 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 ministry of labour and employment said.

"This will benefit about 1.50 crore workers engaged in various scheduled employments in central sphere across the country. This hike in variable dearness allowance will support these workers particularly in the current pandemic times," the ministry further added.

The variable dearness allowance is revised on the basis of the average customer price index for industrial workers (CPI-IW) and it is compiled by the labour bureau. Average CPI-IW for the months of July-December 2020 was used to consider the latest hike in the VDA.

This hike will result in increasing the minimum wages of central employees and workers. The enforcement of this hike under the Minimum Wages Act is ensured by inspecting officers of the Chief Labour Commissioner across the country. The increased VDA will also result in an increase in the provident fund, gratuity, and other benefits that are directly linked with DA according to Subodh Sadana, Partner, AnantLaw.

The hike in VDA is said to be a welcome relief that will help community workers to cope up with the increased cost of living due to inflation and support their families.

Posted By: Sugandha Jha