Variable Dearness Allowance (VDA)

Variable Dearness Allowance (VDA) | Eligibility | Calculation | Points

What is VDA (Variable Dearness Allowance)?

The VDA is being granted to the employees under categorized in the list of the Minimum Wages Act 1948. At present, 40 types of scheduled employments are listed in the category. The employees working in specified employments, such as mines, oilfields, major ports and also in Railway administration. The Variable Dearness allowance is revising twice in a year with effect from 1st April and 1st October according to the Consumer Price Index.

What is the difference between DA and VDA?

DA (Dearness Allowance) is paid for regular Central Government employees including Railways, Armed Forces Personnel. But the VDA (Variable Dearness Allowance) is paid to the employees working in unorganized sector under categorized in the Minimum Wages Act 1948.

Types of Dearness Allowance:

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

The list of category of employments eligible for VDA Revison:

Category 1: The minimum rates of wages including the basic rates and Variable Dearness Allowance payable to the employees working in Agriculture

Category 2: Rates of Variable Dearness Allowance for employees employed in employments 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 (including the 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.

Category 3: The rates of Variable Dearness Allowance for workers employed in 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.

Category 4: RATES OF V.D.A.FOR EMPLOYEES EMPLOYED

Category 5: RATES OF V.D.A.FOR EMPLOYEES EMPLOYED IN “Employment of Sweeping and Cleaning excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993″.

Category 6: RATES OF V.D.A.FOR EMPLOYEES EMPLOYED IN WATCH AND WARD (with arms)

Classification Table of Cities for VDA

Note I. – Area ‘C’ shall comprise all areas not mentioned in this list but to which the Minimum Wages Act, 1948 (11 of 1948) extends.