VDA is revised periodically twice a year effective from April and October
Government of India, Ministry Of Labour and Employment in the lok sabha reply to the Starred Question No: 127 and Answered On: 05.03.2018 regarding Minimum Wages and details as follows.
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:-
(a)whether the Government proposes to formulate any scheme in future for enactment of labour law to ensure regular/assured income of labourers;
(b)if so, the details thereof and if not, the reasons therefor;
(c)whether the Government proposes to fix minimum wages of the labourers/workers; and
(d)if so, the details thereof and the time by which it is likely to be done?
MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI SANTOSH KUMAR GANGWAR)
(a) to (d): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO. 127 FOR 05.03.2018 BY SHRI TARIQ ANWAR REGARDING “MINIMUM WAGES”.
(a) & (b): No, Madam.
(c) & (d): Under the provisions of the Minimum Wages Act, 1948, both Central and State Governments are appropriate Governments to fix, review and revise the minimum wages of the workers employed in the scheduled employment under their respective jurisdictions. Rates fixed in the Central sphere are applicable to establishments under the authority of Central Government, railway administration, mines, oil-fields, major port or any corporation established by a Central Government.
According to the provisions contained in the Minimum Wages Act, 1948, the appropriate Government shall review at such intervals not exceeding five years for scheduled employments under its jurisdiction. The Central Government has revised basic minimum wages for the scheduled employments under Central Sphere w.e.f. 19.01.2017.
Considering five years period too long to check price escalation, idea of Variable Dearness Allowance (VDA) was mooted in terms of recommendation of the Labour Ministers’ Conference held in 1988. Accordingly, VDA is revised periodically twice a year effective from April and October. A statement showing minimum rates of wages applicable in Central Sphere with effect from 01.10.2017.