In a significant move to address the rising cost of living, the Government of Tamil Nadu has issued a notification on March 3, 2025, revising the Dearness Allowance (VDA) and Minimum Wages for various scheduled employments.
This revision, effective from April 1, 2025, will impact workers across a range of industries covered under the Minimum Wages Act, 1948.
Key Highlights of the Revision:
New VDA Calculations:
The revised VDA will be based on the Average Consumer Price Index (CPI) for Chennai City during the calendar year 2024. The new CPI figures are calculated using three different base years:
- Base Year 2001 = 100: 343 Points
- Base Year 1982 = 100: 1698 Points
- Base Year 1960 = 100: 8575 Points
Impact on Various Scheduled Employments:
The notification covers workers in a wide range of scheduled employments, ensuring that their wages reflect the changing economic conditions. Some of the sectors that will see the revision of wages include:
- Aerated Water Manufactory
- Agarbathy Manufactory
- Automobile Workshops
- and several other industries that come under the ambit of the Minimum Wages Act.
What This Means for Workers:
The revision will help protect workers’ purchasing power by increasing their VDA to reflect the rise in the cost of living, as measured by the CPI for Chennai. With inflationary pressures impacting various sectors, the adjustment in wages will ensure that employees in these industries continue to receive fair compensation relative to the economic realities.
The VDA increase will be implemented across various employment sectors, positively affecting the daily earnings of workers engaged in the notified industries.
A Step Towards Fair Compensation:
The Government’s decision to revise the VDA and minimum wages comes as part of its ongoing efforts to provide fair wages and working conditions for all employees in the state. As the economy continues to evolve, the government is keen on ensuring that workers are not left behind in the face of rising living costs.
Looking Ahead:
These changes will come into effect starting April 1, 2025, and will serve as an important benchmark for wages in the state. As the notification is implemented, it will provide financial relief and stability to thousands of workers in Tamil Nadu, helping them cope with the changing economic landscape.
