Assam Increases Variable Dearness Allowance for Workers

The Government of Assam has issued a notification on January 12th 2025 , revising the Variable Dearness Allowance (VDA) for workers employed in various scheduled employments. This revision is based on a 100% rise in the average all-India General Consumer Price Index (CPI) for Industrial Workers, using 2016 as the base year.

The new VDA rates are calculated on the average CPI for the period from June 2023 to November 2023, which saw a 0.578% increase from the previous period of December 2023 to May 2024. As a result, workers in the listed sectors will see an increase in their allowances from June 1, 2024.

Key Employment Sectors Covered:

The revised VDA applies to workers employed in a wide range of sectors, including but not limited to:

  • Bakery, Breweries, Distilleries
  • Film Production, Distribution, and Exhibition
  • Canteens, Clubs, Co-operative Societies
  • Private Transport, Petrol Pumps, Restaurants
  • Tailoring, Theatres, Tube-Well Sinking
  • Agriculture, Forestry, Small Scale Industries
  • Construction, Public Health, Electricity Board

New VDA Structure:

The revised VDA rates applicable to different categories of workers are as follows:

Category of WorkersWage per DayWages per MonthPrevious VDA (Cumulated)New VDA per MonthTotal Wages per Month
Unskilled Workers₹240₹7,200₹2,897.14₹41.61₹10,138.75
Semi-Skilled/Supervisory₹280₹8,400₹3,336.80₹48.55₹11,785.35
Skilled Workers₹350₹10,500₹4,171.95₹60.69₹14,732.64
Clerical Workers₹450₹13,500₹5,363.25₹78.03₹18,941.28

Additional Details:

  1. VDA Calculation: The VDA is updated based on the changes in the CPI and is intended to offset the impact of inflation on workers’ wages.
  2. Effectivity Date: The revised VDA will be applicable from June 1, 2024.
  3. Sectors Impacted: The sectors covered by this order include a broad range of industries, from manufacturing to services, ensuring that the workers in these sectors benefit from the revised rates.

Conclusion:

The revision of the VDA aims to ensure that workers across various industries receive fair compensation in line with the increasing cost of living. This update, effective from June 1, 2024, is a step toward improving the welfare of workers in Assam, enhancing their ability to cope with inflation and the rising costs of essential goods and services.

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