Variable Dearness Allowanvce (VDA) for Central Government employees has been hiked. The hike ranges from Rs 105 to Rs 210 per month. This decision has been taken to provide relief to employees of the central government, who have been affected due to to COVID. This is expected to help approximately 1.5 Crore employees of the central government. The labour ministry has effected this increase to be applicable from 1 April 2021.
“The variable dearness allowance is revised on the basis of average consumer price index for industrial workers (CPI-IW) a price index compiled by labour bureau. The average CPI-IW for the months of July to December 2020 was used for undertaking the latest variable dearness allowance revision," Labour Ministry statement
The following category of central government employees stand to benefit from this raise:
- Scheduled employment in central sphere and applicable to the establishments under the authority of central government
- Railway administration
- Oil Fields
- Major ports or any corporation established by the central government
- Contract and casual employees/workers
The above category of employees stand to get the following benefits:
- Increase in rate of minimum wages for central sphere employees and workers.
- Relief for applicable central government employees during the raging second wave this pandemic.
- Increase in the provident fund, gratuity and other benefits directly linked with DA.
It will enable community workers to cope with the increased cost of living due to inflation and support their families.