On September 25, 2024, the Ministry of Labour and Employment (MoL&E) made a significant announcement regarding the revision of the Variable Dearness Allowance (VDA) for employees across various sectors.
Variable Dearness Allowance
The Variable Dearness Allowance is a wage adjustment mechanism that helps workers cope with inflation. It is calculated based on the Consumer Price Index (CPI) for Industrial Workers, which tracks the average price changes of essential goods and services over time. The latest revision comes as the CPI has risen from 399.70 to 402.09 as of June 30, 2024 (Base Year: 2016 = 100). This increase indicates a general rise in the cost of living, necessitating the adjustment of wages for workers in certain sectors.
Sectors Affected by the VDA Revision
The revised VDA will apply to a broad range of industries and services, ensuring that a significant number of workers benefit from this update. The key sectors include:
• Agriculture
• Gypsum Mines
• Barytes Mines
• Bauxite Mines
• Manganese Mines
• China Clay Mines
• Kyanite Mines
• Copper Mines
• Clay Mines
• Magnesite Mines
• White Clay Mines
• Stone Mines
• Steatite Mines (including the mines producing Soap Stones and Talc)
• Ochre Mines
• Asbestos Mines
• Fire Clay Mines
• Chromite Mines
• Quartzite Mines
• Quartz Mines
• Silica Mines
• Graphite Mines
• Felspar Mines
• Laterite Mines
• Dolomite Mines
• Red Oxide Mines
• Wolfram Mines Iron Ore Mines
• Granite Mines
• Rock Phosphate Mines, Hematite Mines
• Marble and Calcite Mines, Uranium Mines
• Mica Mines
• Lignite Mines
• Gravel Mines
• Slate Mines
• Magnetite Mines
• Construction or Maintenance of Roads or Runways or in Building Operations including Laying down underground electric, wireless, radio, television, telephone, telegraph and overseas communication cables and similar other underground cabling work, electric lines, water supply lines and sewerage pipe lines.
• Goods sheds
• Parcel Offices of Railways
• Other Goods-Sheds, Go-downs, Warehouses and other similar employments
• Docks and Ports
• Passengers and Goods and Cargo Carried out at Airports (both international and domestic)
• Employment of Sweeping and Cleaning excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993
• Watch & Ward (without arms) and Watch and Ward (with arms)
• Stone Miners
This shall be in effect from October 01, 2024
