On November 14, 2024, the Government of Kerala issued a notification concerning the revised Variable Dearness Allowance (VDA) for employees in various sectors, including Shops and Commercial Establishments, as well as the Computer Software Sector.
The notification also referenced the Consumer Price Index Numbers (CPI) for the month of September 2024, as part of the state’s commitment to adjusting wages according to the cost of living for workers under the Minimum Wages Act.
Key Updates from the Notification:
- Revised Variable Dearness Allowance (VDA):
- The VDA is revised based on the Consumer Price Index (CPI) for Agricultural Labourers and Industrial Workers, which measures inflation and the cost of living.
- The VDA adjustment aims to provide fair wages in alignment with the changing economic conditions, ensuring that workers’ purchasing power is maintained.
- CPI for September 2024:
- The updated CPI values for various regions in Kerala for September 2024 have been outlined in the notification. These values are based on indices that reflect the cost of living in various centers across the state.
- The CPI values are calculated using two different base years: 2011-12 (for agricultural and industrial workers) and 1998-99 (for certain other employment sectors).
CPI Index Numbers for September 2024 (Base Year: 2011-12 = 100, Base Year: 1998-99 = 100):
| Centre | Linking Factor | CPI (Base 2011-12) | CPI (Base 1998-99) |
| Thiruvananthapuram | 2.11 | 207 | 437 |
| Kollam | 2.09 | 205 | 428 |
| Punalur | 2.10 | 201 | 422 |
| Pathanamthitta | 2.03 | 220 | 447 |
| Alappuzha | 2.05 | 208 | 426 |
| Kottayam | 2.08 | 215 | 447 |
| Mundakayam | 2.17 | 212 | 460 |
| Idukki | 1.97 | 210 | 414 |
| Ernakulam | 2.03 | 202 | 410 |
| Chalakkudy | 2.00 | 220 | 440 |
| Thrissur | 1.87 | 215 | 402 |
| Palakkad | 2.09 | 197 | 412 |
| Malappuram | 2.00 | 211 | 422 |
| Kozhikode | 2.02 | 215 | 434 |
| Wayanad | 1.93 | 208 | 401 |
| Kannur | 2.02 | 219 | 442 |
| Kasargod | 2.05 | 225 | 461 |
The CPI indices for September 2024 reflect a slight variation in cost of living across the different regions, which in turn affects the calculation of the VDA.
The Consumer Price Index for September 2024 is calculated as part of the ongoing effort to adjust workers’ wages under the Minimum Wages Act (Central Act XI of 1948).
The Government of Kerala’s revised notification for Variable Dearness Allowance (VDA) underlines the state’s commitment to fair wage adjustments for workers across sectors, ensuring that minimum wages stay aligned with the changing cost of living. This move helps bolster the financial security of workers in the Shops and Commercial Establishments and Computer Software Sectors while considering regional economic factors.
