The Union Labour Ministry has revised Variable Dearness Allowance (VDA) for central sphere employees on Friday. The new rate will be applicable from April 1, 2021.

The Centre said it would 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," said Union Labour Minister Santosh Kumar Gangwar in a statement.

The VDA is revised based on the average Consumer Price Index for industrial workers (CPI-IW). Therefore, the average CPI-IW for July to December 2020 was used for undertaking the latest VDA revision.

The new VDA for construction or maintenance of roads or runways or building operations workers will be ₹645 for A class cities, ₹539 for B class cities and ₹431 for C class cities. For semi-skilled and unskilled supervisors, the new rate would be ₹714, ₹609 and ₹505, respectively. For skilled clerical staff in this sector, the VDA will be ₹784, ₹714 and ₹609.

For loading and unloading workers, it is ₹645, ₹539 and ₹431. For watch and ward without arms ₹784, ₹714 and ₹609 are the new VDA rates. For unskilled agriculture workers, ₹411, ₹375 and ₹372 are the new rates. For mines employees, the new rate varies between ₹431 and ₹840.

The new rates apply to the establishments under 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 Government release said.

CITU national secretary DD Ramanandan said there is nothing new in the order. "This is not a revision of minimum wages. This is a routine VDA increase which is usually done in every three months in public sector enterprises. The BJP is trying to make sound everything as a bonanza for people. We have been demanding an increase is basic salary for workers in this sphere. But it has not been met," Ramanandan added.

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