New Delhi, May 25: In a good news for a large section of central government employees, who receive salary under the 7th Pay Commission or 7th CPC, the government revised the rate of Variable Dearness Allowance (VDA). As per the notification issued by the Ministry of Labour and Employment, the hike in VDA is applicable to workers engaged in various scheduled employments in central sphere. The revised rate come into effect from April 1 this year. 7th Pay Commission Latest News: Hike in TA Unlikely for Central Government Employees From July 1, Here's Why.
"This will benefit about 1.50 crore workers engaged in various scheduled employments in central sphere across the country. This hike in VDA will support these workers particularly in the current pandemic times," Labour and Employment Minister Santosh Gangwar said. Workers of the establishments under the authority of central government, railway administration, mines, oil fields, major ports or any corporation established by the central government will get the benefits. 7th Pay Commission Latest News Update: Announcement on DA Hike for Central Govt Employees May Get Delayed Due to COVID-19, Says Report.
The revised rate of VDA is equally applicable to contract and casual employees and workers, as per the government. The VDA is revised on the basis of average Consumer Price Index for industrial workers (CPI-IW) a price index compiled by Labour Bureau. The average CPI-IW for the months of July to December 2020 was used for undertaking the latest VDA revision.
The increased VDA also means an increase in the rate of minimum wages for more than 15 million central sphere employees and workers. Reports also said the hike in VDA also lead to an increase in the provident fund, gratuity, and other benefits that are directly linked with DA. Meanwhile, there is no update on long-pending demand of a hike in minimum pay, under the 7th Pay Commission.
(The above story first appeared on LatestLY on May 25, 2021 12:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).