The Union Ministry of Labor and Employment has announced an increase in the VDA of government employees. Apart from permanent employees, contract workers will also get the benefit of this.
The government has given great relief to the central employees during the Corona period. The Union Ministry of Labor and Employment has announced an increase in variable dearness allowance for central employees. It is being doubled. Now, instead of 105, employees will get 210 rupees more every month.
This announcement of the government will benefit about 1.5 crore central employees. This increase will also affect their provident fund and gratuity. Apart from this, the benefit of increase in variable dearness allowance will also be given to the employees working on the contract.
Allowance is decided on the basis of CPI-IW
The variable dearness allowance given to employees is decided on the basis of Consumer Price Index for Industrial Works Consumer Price Index for Industrial Workers (CPI-IW). This work is done by the Labor Bureau. According to the ministry, the average CPI-IW from July to December 2020 has been used for the new variable dearness allowance (VDA).
Those working in these areas will benefit
According to the notification issued by the Union Ministry of Labor and Employment, this increase will also increase the minimum wage of central employees. The benefit of increase in allowances will be given to about 1.5 crore employees working in railways, mining, oil fields, ports and other central government offices.
There is a possibility of increase in D.A.
Under the Seventh Pay Commission, Dearness Allowance (Dearness Allowance) of government employees can also be increased. According to the National Council of JCM, the DA may increase by 4 per cent. The council is constantly in talks with the Finance Department’s Department of Expenditure (DoE) and the Department of Personnel (DoPT). The decision was deferred for a month due to the rising outbreak of the second wave of Corona, but it is now believed that the DA of employees and the DR of pensioners will be increased from June or beyond.
