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Govt hikes variable DA; 1.5 cr central govt employees to benefit

7th Pay Commission latest update: The hike, announced on Friday, May 21, effective from April 1, 2021, will also, result in an increase in the rate of minimum wages for over 1.5 crore central government employees and workers.

twitter-logoBusinessToday.In | May 23, 2021 | Updated 00:11 IST
Govt hikes variable DA; 1.5 cr central govt employees to benefit
Variable DA is revised on the basis of the average Consumer Price Index for Industrial Workers (CPI-IW)

The Union Ministry of Labour and Employment has announced a hike in variable dearness allowance (DA) from Rs 105 per month to Rs 210 per month for central government employees.

The hike, announced on Friday, May 21, effective from April 1, 2021, will also, result in an increase in the rate of minimum wages for over 1.5 crore central government employees and workers.

"This will benefit about 1.50 crore workers engaged in various scheduled employments in the central sphere across the country. This hike in VDA will support these workers, particularly in the current pandemic times," Union Labour Minister Santosh Gangwar said.

Variable DA is revised on the basis of the average Consumer Price Index for Industrial Workers (CPI-IW). The average CPI-IW for July-December 2020 was factored in for the latest VDA revision, according to the Labour Ministry.

Besides this, the hike is also applicable for establishments under the authority of the central government, railway administration, mines, oil fields, major ports or any corporation established by the central government. The hike in variable DA will also apply to contract and casual employees/workers.

Enforcement of the Minimum Wages Act in the central sphere is ensured through the Inspecting Officers of Chief Labour Commissioner (Central) across the country for employees engaged in the scheduled employment in the central sphere.

Edited by Mehak Agarwal

Also read: 7th Pay Commission: Centre likely to announce DA hike in June

Also read: 7th Pay Commission: Deadline for performance report of central govt employees extended

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