The Ministry of Labour and Employment on April 2nd 2025 has issued a corrigendum updating the rates of Variable Dearness Allowance (VDA) for employees working in various types of mines. This revision, effective from April 1, 2025, comes after the average Consumer Price Index (CPI) for Industrial Workers increased from 402.09 to 413.42 as of December 31, 2024, resulting in an increment of 11.33 points.
Key Highlights of the Revision:
Revised VDA Rates:
The new VDA rates apply to employees in mines such as Gypsum, Barytes, Bauxite, Manganese, Copper, Marble, Iron Ore, Uranium, Lignite, Slate, and more. The updated rates are categorized based on the type of work (above ground or below ground) and the skill level of the worker.
VDA Rates (Per Day):
| Category of Worker | Work Above Ground (Rs.) | Work Below Ground (Rs.) |
| Unskilled | 191 | 237 |
| Semi-Skilled/Unskilled Supervisory | 237 | 282 |
| Skilled/Clerical | 282 | 328 |
| Highly Skilled | 328 | 366 |
Minimum Rates of Wages (Including VDA):
| Category of Worker | Work Above Ground (Rs.) | Work Below Ground (Rs.) |
| Unskilled | 541 | 674 |
| Semi-Skilled/Unskilled Supervisory | 674 | 805 |
| Skilled/Clerical | 805 | 938 |
| Highly Skilled | 938 | 1,048 |
Note: The VDA has been rounded off to the next higher rupee as per the decision of the Minimum Wages Advisory Board.
Additional Details:
- The classification of workers remains the same as mentioned in Part-1 of the earlier notification.
- The classification of cities into Areas A, B, and C follows the guidelines set in Part-II of the notification dated January 19, 2017.
- A detailed annexure has been provided for reference, outlining the current classification of cities.
Why This Matters:
The VDA revision is part of the government’s ongoing effort to adjust wages in line with inflation and the cost of living. This ensures that workers in the mining sector receive fair compensation, reflecting the current economic conditions.
Mine operators and employers are advised to update their wage structures accordingly to ensure compliance with the new rates.
