Ministry of Labour and Employment on March 28th 2025 has officially announced the revision of Variable Dearness Allowance (VDA) and minimum wages for employees engaged in scheduled employments. This revision will come into effect from April 1, 2025,
Key Highlights of the Revision:
The revision has been made based on the average Consumer Price Index (CPI) for Industrial Workers, which has increased from 402.09 to 413.42 as of December 31, 2024 (Base Year: 2016=100). This rise of 11.33 points has led to the adjustment in VDA rates across various industries.
Sectors Affected:
The updated VDA rates will be applicable to employees working in the following sectors:
Implications of the Revision:
This adjustment is expected to provide much-needed financial relief to millions of workers by improving their purchasing power in response to inflationary trends. The updated VDA rates, along with the revised minimum wages, will help bridge the gap between the cost of living and earnings, ensuring fair compensation for labor.
Government’s Objective:
The Ministry of Labour and Employment emphasized that this revision aligns with the government’s commitment to safeguarding the interests of the workforce, ensuring social security, and maintaining economic stability.
