Governor of Bihar introduces the formula for Variable Dearness Allowance in the minimum rates of wages for certain employments
The Governor of Bihar vide a Notification dated 15th September, 2017 has introduced the formula for Variable Dearness Allowance (VDA) in the minimum rates of wages fixed/revised for different categories of employees employed in 69 scheduled employments as specified in Schedule 1(B) of the notification (please refer to the hyperlinked source below).
- The rates of VDA will be based on the average of All India Consumer Price Index (“Index”) on which the minimum rates of wages have been fixed/revised in the specified scheduled employments (“Employments”).
- The increase or decrease in the rates of the wages will depend on the rise or fall in the Index of the Employments and will be deemed as VDA components. However, even if the Index falls below the point on which the minimum rates of wages has been fixed/revised, there will not be any reduction in the minimum wages so fixed/revised.
- The payment of VDA on the basis of the average Index of January-June, 2017 will be payable at the determined rates from October, 2017.
- Any increase or decrease in the amount of VDA will be based on the average of the Index number for every six months and will be applicable after the expiry of three months from the said period of six months.
Source: Bihar Labour Department