[India] 15 million workers will benefit from minimum wage hike

[India] 15 million workers will benefit from minimum wage hike
26 May 2021

On May 21, India’s ministry of labour and employment announced a hike in the variable dearness allowance (VDA) for workers in the railway administration, mines, oil fields, ports and other sectors in the central government. The move is expected to benefit about 15 million workers, The Times of India reports.

The hike - which will be effective retrospectively from April 1, 2021 - will range from Rs 105 per day to Rs 210 per day, depending on a worker’s occupation and geographical location and will also have a resultant impact on minimum wages for workers.

The VDA is similar to the dearness allowance for government employees. The government’s revised wages notification will reportedly be applicable to establishments such as the railway administration, mines, oil fields, major ports or all corporations established by the Central government.

Contractual and casual workers also entitled to hike in VDA

The VDA hike will be equally applicable to all contractual and casual workers. The cumulative hike is expected to be in the range of Rs 2,000 and Rs 5,000 per month.

Unskilled mine workers will draw Rs 431 per day, those working underground will be eligible to receive VDA at the rate of Rs 539 per day. While highly skilled mine workers working on the ground will now draw Rs 752 a day and highly skilled mine workers working underground will be eligible to receive Rs 840 per day as VDA.

Revision of VDA has also been made for agriculture workers across all skill categories, building and construction workers. ‘Sweeping and cleaning’ workers, ‘watch and ward’ workers and workers working for loading and unloading works are also eligible for the pay revisions.

A statement from the labour ministry said it has notified and revised the rate of VDA with effect from April 1, 2021. Santosh Gangwar - union labour and employment minister - said the hike in VDA will particularly support these workers in the wake of the economic pressures caused by the COVID-19 pandemic.

The government added that the VDA was revised on the basis of the average Consumer Price Index for Industrial Workers (CPI-IW). The ministry took the average CPI-IW for the months of July to December 2020 to calculate the current revision. The enforcement of the Minimum Wages Act in the central sphere, the government said, is ensured through the offices of the Chief Labour Commissioner (Central).


Source: The Times of India

On May 21, India’s ministry of labour and employment announced a hike in the variable dearness allowance (VDA) for workers in the railway administration, mines, oil fields, ports and other sectors in the central government. The move is expected to benefit about 15 million workers, The Times of India reports.

The hike - which will be effective retrospectively from April 1, 2021 - will range from Rs 105 per day to Rs 210 per day, depending on a worker’s occupation and geographical location and will also have a resultant impact on minimum wages for workers.

The VDA is similar to the dearness allowance for government employees. The government’s revised wages notification will reportedly be applicable to establishments such as the railway administration, mines, oil fields, major ports or all corporations established by the Central government.

Contractual and casual workers also entitled to hike in VDA

The VDA hike will be equally applicable to all contractual and casual workers. The cumulative hike is expected to be in the range of Rs 2,000 and Rs 5,000 per month.

Unskilled mine workers will draw Rs 431 per day, those working underground will be eligible to receive VDA at the rate of Rs 539 per day. While highly skilled mine workers working on the ground will now draw Rs 752 a day and highly skilled mine workers working underground will be eligible to receive Rs 840 per day as VDA.

Revision of VDA has also been made for agriculture workers across all skill categories, building and construction workers. ‘Sweeping and cleaning’ workers, ‘watch and ward’ workers and workers working for loading and unloading works are also eligible for the pay revisions.

A statement from the labour ministry said it has notified and revised the rate of VDA with effect from April 1, 2021. Santosh Gangwar - union labour and employment minister - said the hike in VDA will particularly support these workers in the wake of the economic pressures caused by the COVID-19 pandemic.

The government added that the VDA was revised on the basis of the average Consumer Price Index for Industrial Workers (CPI-IW). The ministry took the average CPI-IW for the months of July to December 2020 to calculate the current revision. The enforcement of the Minimum Wages Act in the central sphere, the government said, is ensured through the offices of the Chief Labour Commissioner (Central).


Source: The Times of India

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