Introduction of Variable Dearness Allowance (VDA) in Bihar

The Governor of Bihar has introduced a formula for Variable Dearness Allowance (VDA) under the Minimum Wages Act, 1948, impacting various employee categories. This move aims to adjust minimum wage rates to reflect changes in living costs. The VDA rates, effective April 1, 2024, are determined based on the average All India Consumer Price Index. Notably, if the index falls below the minimum wage benchmark, wages won’t decrease. Scheduled employment encompasses diverse sectors, ranging from the cooperative sector to automobile engineering shops. Each category of worker—unskilled, semi-skilled, skilled, highly skilled, and supervisory/clerical—has prescribed minimum wage rates with VDA components. Adjustments to VDA occur every six months based on the average consumer price index, with changes implemented three months after each period. This mechanism ensures fair compensation aligned with economic fluctuations, prioritizing the well-being of workers. This notification was published on 14.03.2024.