Revised Variable Dearness Allowance (VDA) for Farm Workers

The Chief Labour Commissioner (Central), Government of India, the Ministry of Labour and Employment has revised the Variable Dearness Allowances for the labours belong to Mines, Construction, agriculture, loading & unloading operations in good shed sectors. Thus the Revised Variable Dearness Allowances boosts the Minimum wages in the businesses under the Government of India. The enhanced Minimum Wages of Variable Dearness Allowances stands applicable with effect from 01.10.2019.

Definition of the Dearness Allowance

Dearness Allowance is an amount paid by the Government to its employees in order to overcome the effect of the price rise. The efficient salary or the wages of the employees needed a constant revision so that they are liable to deal with the increase in the alarming prices.

Factors Administrating the Variable Dearness Allowance

With the impact of inflation fluctuating according to the location of the employee, Dearness Allowance is computed henceforth. As per the Notification No. S.O. 186(E), the Ministry of Labour and Employment, the revision of the Variable Dearness Allowance is undertaken on the basis of the average Consumer Price Index.
Thus, DA varies from employee to employee centred on their presence in the urban, semi-urban or rural sector referred as ‘A’, ‘B’ and ‘C’ respectively.
The Government of India clears higher DA and extends the date for farmers to link Aadhaar with bank accounts in order to avail the purpose.

Under the obligations of the Minimum Wages Act, 1948, the Central and State Governments are fitting to dose, review and revise the minimum wages of the workers employed in the

agriculture and non-agricultural sector.

Category of Agriculture Farmers

The Workers are generally categorised as below:

Unskilled: The persons who are not technically trained and are employed as the general labour, who works under the supervision of others.
Semi-Skilled/Unskilled Supervisory: The workers who generally have no defined routine and discharge the duties assigned to him or relatively narrow job and where important decisions are made by others
Skilled/Clerical: Skilled labour refers to the labour who have specialised training, or a learned skill set to perform the work.
Highly Skilled: Highly Skilled workers are based on their education, work experience, knowledge

Revised Variable Dearness Allowances rate list: The increase in the Variable Dearness Allowance for all the types of workers on per day for the 3 categories are as follows: “A” category locations:

A sum of Rs.50 is increased for the unskilled workers
A sum of Rs.56 is increased for the semi-skilled workers or unskilled supervisory
A sum of Rs.60 is increased for the skilled workers
A sum of Rs.66 is increased for the highly skilled workers

“B” category locations:

A sum of Rs.47 is increased for the unskilled workers
A sum of Rs.50 is increased for the semi-skilled workers or unskilled supervisory
A sum of Rs.56 is increased for the skilled workers
A sum of Rs.62 is increased for the highly skilled workers

“C” category locations:

A sum of Rs.47 is increased for the unskilled workers
A sum of Rs.47 is increased for the semi-skilled workers or unskilled supervisory
A sum of Rs.50 is increased for the skilled workers
A sum of Rs.56 is increased for the highly skilled workers

Rate List of the Daily Minimum Wages added with the VDA: The total increase in the Rate of minimum Wages including the Variable Dearness Allowance for all the types of workers on per day for the 3 categories of locations are provided below: “A” category locations:

Unskilled workers - Daily wage of Rs.333 plus the VDA amount Rs.50, totalling to Rs.383.
Semi-skilled workers or unskilled supervisory - Daily wage of Rs.364 plus the VDA amount Rs.56, totalling to Rs.420.
Skilled Workers - Daily wage of Rs.395 plus the VDA amount Rs.60, totalling to Rs.455.
Highly skilled workers - Daily wage of Rs.438 plus the VDA amount Rs.66, totalling to Rs.504.

“B” category locations:

Unskilled workers - Daily wage of Rs.303 plus the VDA amount Rs.47, totalling to Rs.350.
Semi-skilled workers or unskilled supervisory - Daily wage of Rs.335 plus the VDA amount Rs.50, totalling to Rs.385.
Skilled workers - Daily wage of Rs.364 plus the VDA amount Rs.56, totalling to Rs.420.
Highly skilled workers - Daily wage of Rs.407 plus the VDA amount Rs.62, totalling to Rs.469.

“C” category locations:

Unskilled workers - Daily wage of Rs.300 plus the VDA amount Rs.47, totalling to Rs.347.
Semi-skilled workers or unskilled supervisory - Daily wage of Rs.307 plus the VDA amount Rs.47, totalling to Rs.354.
Skilled workers - Daily wage of Rs.334 plus the VDA amount Rs.50, totalling to Rs.384.
Highly skilled workers - Daily wage of Rs.364 plus the VDA amount Rs.56, totalling to Rs.420.

Back to Learn

Frequently Asked Questions

Common questions about Revised Variable Dearness Allowance for Farm Workers in India.

Variable Dearness Allowance (VDA) is an additional allowance paid to workers in specific sectors like agriculture, mining, construction, and loading/unloading operations to help them cope with rising living costs due to inflation. The VDA amount varies based on the worker's skill level and location category (urban, semi-urban, or rural).

The Chief Labour Commissioner (Central), under the Ministry of Labour and Employment, Government of India, is responsible for revising the VDA rates. The rates are reviewed and revised periodically based on the average Consumer Price Index, ensuring that workers' minimum wages keep pace with inflation.

The VDA amount varies based on the worker's location category, categorized as 'A' (urban), 'B' (semi-urban), or 'C' (rural). Generally, workers in urban areas receive a higher VDA compared to those in semi-urban and rural areas, as the cost of living tends to be higher in urban areas.

The VDA rates are determined based on four skill levels: unskilled, semi-skilled/unskilled supervisory, skilled/clerical, and highly skilled. Higher skill levels typically receive a higher VDA amount, recognizing the additional expertise and responsibilities associated with those roles.

According to the article, the revised VDA rates came into effect on October 1, 2019, boosting the minimum wages for workers in sectors covered under the Government of India's purview.

The minimum wage for a worker is calculated by adding the VDA amount to the base daily wage rate for their respective skill level and location category. For example, an unskilled worker in an 'A' category location would receive a daily wage of Rs. 333 plus the VDA of Rs. 50, totaling Rs. 383.

The Dearness Allowance is an amount paid by the Government to its employees to help them cope with the rising cost of living due to inflation. It ensures that workers' real wages do not get eroded by price increases, allowing them to maintain their standard of living.

The VDA revision is based on the average Consumer Price Index, which measures the changes in the prices of a basket of goods and services consumed by households. As the Consumer Price Index fluctuates, the VDA rates are adjusted accordingly to reflect the impact of inflation on workers' purchasing power.

No, the VDA specifically applies to workers in sectors like agriculture, mining, construction, and loading/unloading operations that fall under the purview of the Government of India's Minimum Wages Act, 1948. Other sectors may have different provisions for addressing inflation's impact on wages.

Under the Minimum Wages Act, 1948, both the Central and State Governments are responsible for fixing, reviewing, and revising the minimum wages for workers employed in the agricultural and non-agricultural sectors within their respective jurisdictions, ensuring that workers receive fair and adequate compensation.