The Government of Uttarakhand has issued a notification on February 21, 2025, regarding the revision of Variable Dearness Allowance (VDA) and minimum wages for the Engineering Industry. This revision, which is effective from 1st February 2025, is based on the All India Consumer Price Index (CPI) for the period from July 2024 to December 2024. The revised wages and allowances apply to engineering industries
The VDA rates have been updated, based on the average CPI of 1914 for the specified period, and these new rates will be applicable to employees in various categories, such as unskilled, semi-skilled, and skilled workers.
Key Details:
Effective Date: The new minimum wages and VDA will be in effect from 1st February 2025 to 31st July 2025.
Category-wise Minimum Wages and VDAfor establishments employing 1-50 to 500 persons :
- Unskilled workers will see a minimum wage of Rs. 2,535 along with a VDA of Rs. 8,855.
- Semi-skilled workers will receive a minimum wage of Rs. 2,785 with a VDA of Rs. 9,728.
- Skilled workers will be entitled to a minimum wage of Rs. 3,090 along with a VDA of Rs. 10,793.
For establishments employing more than 500 employees, the minimum wages and VDA are slightly higher.
Revised Wages and VDA for Engineering Industry (Effective from 1st February 2025):
| Category of Employee | Establishments with 50 to 500 Employees | Establishments with More than 500 Employees |
| Unskilled | Basic Wage: Rs. 2,535 / VDA: Rs. 8,855 | Basic Wage: Rs. 2,660 / VDA: Rs. 9,291 |
| Semi-skilled | Basic Wage: Rs. 2,785 / VDA: Rs. 9,728 | Basic Wage: Rs. 2,925 / VDA: Rs. 10,217 |
| Skilled | Basic Wage: Rs. 3,090 / VDA: Rs. 10,793 | Basic Wage: Rs. 3,190 / VDA: Rs. 11,143 |
Why This Matters:
- Fairer Compensation: This revision ensures that workers in the engineering sector are compensated fairly in line with the changing economic conditions, helping them cope with inflation and the rising cost of living.
- Variable Dearness Allowance: The inclusion of VDA allows workers to receive a compensation adjustment based on the consumer price index (CPI), ensuring that their wages are adjusted to the current economic environment.
- Increased Support for Workers: Both skilled and semi-skilled workers in the engineering industry will benefit from the increased wages and dearness allowance, providing them with better financial security for the upcoming period.
