VDA – Variable Dearness Allowance

VDA – Variable Dearness Allowance

Variable Dearness Allowance - VDA

What is VDA (Variable Dearness Allowance) and how does it work?

Employees who are included on the list of the Minimum Wages Act 1948 are eligible for the VDA. The category now includes 40 different types of scheduled jobs. Employees employed in certain occupations, such as mines, oilfields, major ports, and railway administration. The Variable Dearness Allowance is increased twice a year, on April 1st and October 1st, based on the Consumer Price Index.

What is the difference between DA Dearness Allowance and VDA Variable Dearness Allowance?

Regular Central Government employees, including Railways and Armed Forces personnel, receive DA (Dearness Allowance). However, under the Minimum Wages Act 1948, the VDA (Variable Dearness Allowance) is paid to employees working in the unorganised sector.

What Are the Different types of Dearness Allowance?

  • Dearness Allowance (DA): Central Govt Employees including Railways and Armed Forces Personnel
  • Industrial Dearness Allowance (VDA): Public Sector Employees of Central Government
  • Variable Dearness Allowance (IDA): Specified Category Workers under the Minimum Wage Act

What types of occupations are eligible for VDA Revision?

Type 1: The minimum wage rates, including the basic rate and Variable Dearness Allowance, payable to agricultural employees.

Type 2: Employees working in Gypsum Mines, Barytes Mines, Bauxite Mines, Manganese Mines, China Clay Mines, Kyanite Mines, Copper Mines, Clay Mines, Magnesite Mines, White Clay Mines, Stone Mines, Steatite Mines (includes mines producing Soap Stones and Talc), Ochre Mines, Asbestos Mines, Fire Clay Mines, Chromite Mines, Quartzite Mines, Quartz Mines, Silica Mines, Graphite Mines, Felspar Mines, Laterite Mines, Dolomite Mines, Red Oxide Mines, Wolfram Mines Iron Ore Mines, Granite Mines Rock Phosphate Mines, Hematite Mines, Marble, and Calcite Mines, Uranium Mines, Mica Mines, Lignite Mines, Gravel Mines, Slate Mines, and Magnetite Mines.

Type 3: Employees working in the CONSTRUCTION OR MAINTENANCE OF ROADS OR RUNWAYS OR IN BUILDING OPERATIONS INCLUDING LAYING DOWN UNDERGROUND ELECTRIC, WIRELESS, RADIO, TELEVISION, TELEPHONE, TELEGRAPH AND OVERSEAS COMMUNICATION CABLES AND SIMILAR OTHER UNDERGROUND CABLING WORK, ELECTRIC LINES, WATER SUPPLY LINES AND SEWERAGE PIPE LINES.

Type 4: RATES OF [VDA] Variable Dearness Allowance FOR EMPLOYEES EMPLOYED

Type 5: VDA RATES FOR EMPLOYEES IN “Sweeping and Cleaning, except activities forbidden under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993”

Type 6: V.D.A. RATES FOR EMPLOYEES IN THE WATCH AND WARD (with arms)

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