On February 1, 2025, the Government of Uttar Pradesh issued a notification revising the Variable Dearness Allowance (VDA) and minimum wages for workers employed in the engineering industry. This revision will be effective from February 1, 2025.
Key Highlights of the Revision:
- The revision follows the provisions in the Government’s earlier notification dated September 14, 2016, under which VDA for workers in engineering factories with 50 or more employees is calculated based on the All India Consumer Price Index (CPI).
- Inflation Adjustment: The VDA is designed to neutralize 100% of inflation above 239 points of the CPI (2001=100). The CPI is calculated twice a year: from February to July and August to January of the previous year.
- Current VDA Adjustment: From July 2024 to December 2024, the CPI stood at 413 points, which is 174 points above the base of 239. This will result in an increase in the dearness allowance for workers from February 1, 2025, to July 31, 2025.
unskilled workers will receive an additional Rs 5,417 per month in their VDA, effective from February 1, 2025.
Conclusion:
This revision ensures that workers in the engineering sector are protected from the effects of inflation, ensuring fair wages that keep pace with rising living costs. The Uttar Pradesh Government remains committed to improving workers’ welfare and ensuring that employees in engineering units receive timely and fair adjustments in their compensation.
