Labour Ministry hikes minimum wages for central sphere workers from Oct 1

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, results in an increase in the minimum pay for employees and workers in the core sphere.

‘At a time when the country is struggling with COVID-19 pandemic, in a major relief to different category of workers engaged in various scheduled employments in the central sphere, the Ministry of Labour & Employment has notified and revised the rate of variable dearness allowance (VDA) with effect from October 1, 2021,’ a statement from the ministry said.

The average consumer price index for industrial workers (CPI-IW), a price index maintained by the Labor Bureau, is used to update the VDA (an attached office of the Ministry of Labour & Employment). The current VDA modification was based on the average CPI-IW for the months of January to June 2021.

According to a statement from Labour Minister Bhupender Yadav, the action will help around 1.5 crore people employed in various scheduled jobs in the central domain across the country.

Construction, maintenance of roads, runways and building activities, sweeping and cleaning, loading and unloading, watch and ward, mining, and agriculture are all places where these personnel operate.

The minister said the hike is in keeping with Prime Minister Narendra Modi’s vision of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, and Sabka Prayas’. He also wished all nation builders a Happy Deepavali.

The rates for planned employment in the Central sphere apply to all central government institutions, including railway administration, mines, oil fields, major ports, and any company formed by the central government. These prices apply to both contract and non-contract employees/workers.

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The VDA in respect of scheduled employments in the central sphere is amended twice a year, on April 1 and October 1, according to D P S Negi, Chief Labour Commissioner (Central). As per the gazette announcement, the period under consideration for this decree 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 nation.