From October 1, the Labour Ministry will raise the minimum pay for workers in the core sphere.

29th Oct,2021

From October 1, the Labour Ministry will raise the minimum pay for workers in the core sphere.



The rate of variable dearness allowance for 1.5 crore central sphere workers has been amended by the Ministry of Labour and Employment. The rise, which will take effect on October 1, will result in an increase in the minimum pay for employees and workers in the core sphere.
At a time when the country is grappling with the COVID-19 pandemic, the Ministry of Labour & Employment has notified and revised the rate of Variable Dearness Allowance [VDA] with effect from October 1, 2021, in a major relief to various categories of workers engaged in various scheduled employments in the central sphere, according to a statement from the ministry.The VDA is updated based on the average Consumer Price Index for Industrial Workers (CPI-IW), a price index compiled by the Bureau of Labor Statistics (an attached office of the Ministry of Labour & Employment).

The latest VDA modification was based on the average CPI-IW for the months of January to June 2021.

The VDA in respect of scheduled employment under the central sphere is amended twice a year, on April 1 and October 1, according to D.P.S. Negi, Chief Labour Commissioner (Central). Furthermore, according to the gazette, the term under consideration for this order is January to June 2021.The implementation of the Minimum Wages Act in the central sphere is ensured for employees/workers engaged in scheduled employment in the central sphere by inspecting officers of the Chief Labour Commissioner (Central) Organization across the country.