The Government of India’s Ministry of Labour & Employment, under the authority granted by a notification from January 19, 2017, has issued an order on September 26, 2023. This order revises the rates of Variable Dearness Allowance (VDA) based on the average Consumer Price Index for Industrial workers, which has increased from 378.58 to 385.97 as of June 30, 2023 (Base 2016=100), resulting in an increase of 7.39 points.
Ministry of Labour & Employment’s Latest VDA Update – October 2023
F.No. 1/8(3)/2023-LS-II
Government of India
Ministry of Labour & Employment
Office of the Chief Labour Commissioner(C)
New Delhi
Dated: 26/9/2023
O R D E R
In exercise of the powers conferred by Central Government vide Notification No. S.0. 188(E) dated 19th January, 2017 of the Ministry of Labour and Employment the undersigned hereby revise the rates of Variable Dearness Allowance on the basis of the average Consumer Price Index for Industrial workers reaching 385.97 from 378.58 as on 30.06.2023 (Base 2016=100) and thereby resulting in an increase of 7.39 points. The revised Variable Dearness Allowance as under shall be payable from 01.10.2023;-
| Category of worker | Rates of V.D.A. Area wise per day (in Rupees) | ||
| A | B | C | |
| Unskilled | 228 | 191 | 154 |
| Semi-Skilled / Unskilled Supervisory | 253 | 215 | 179 |
| Skilled I Clerical | 278 | 253 | 215 |
| Highly Skilled | 299 | 278 | 253 |
Therefore the minimum rates of wages showing the basic rates and Variable Dearness Allowance payable w.e.f. 01.10.2023 Will be as under:-
| Category of worker | Rates of wages including V.D.A. per day (in Rupees) | ||
| A Area | B Area | C Area | |
| Unskilled | 523+228=751 | 437+191=628 | 350+154=504 |
| Semi-Skilled/ Unskilled Supervisory | 579+253=832 | 494+215=709 | 410+179=589 |
| Skilled / Clerical | 637+278=915 | 579+253=832 | 494+215=709 |
| Highly Skilled | 693+299=992 | 637+278=915 | 579+253=832 |
The VDA has been rounded off to the next higher rupee as per the decision of the Minimum Wages Advisory Board.
The classification of workers under different categories will be same as in Part-I of the notification, whereas classification of cities will be same as in the Part- II of the notification dated 19th January, 2017. The present classification of cities into areas A, B & C is enclosed at Annexure I for ready reference.
(Remis Tiru)
Chief Labour Commissioner(C)