Revised Variable Dearness Allowance for Farm Workers

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:

  1. Unskilled: The persons who are not technically trained and are employed as the general labour, who works under the supervision of others.
  2. 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
  3. Skilled/Clerical: Skilled labour refers to the labour who have specialised training, or a learned skill set to perform the work.
  4. 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.

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