Ministry of Labour and Employment Issues Notification on Variable Dearness Allowance Revision Effective from 1st October 2025

The Ministry of Labour and Employment has issued a notification revising the Variable Dearness Allowance (VDA) for employees engaged in scheduled employments, effective from 1st October 2025.

Correction Notice (Corrigendum)

As per the corrigendum to the VDA order dated 25.09.2025, the first paragraph has been corrected to clarify the revision details. The revised text reads as follows:

“In exercise of the powers conferred by the Central Government vide Notification No. S.O. 156(E) dated 19th January, 2017 of the Ministry of Labour and Employment, the undersigned hereby revises the rates of Variable Dearness Allowance for the employees employed in Agriculture w.e.f. 01.10.2025, based on the average Consumer Price Index for Industrial Workers reaching 413.52 from 413.424 as on 30.06.2025 (Base 2016=100), resulting in an increase of 0.096 points, which is less than one. Therefore, the resultant increase in Variable Dearness Allowance is considered NIL/Zero.”

Scope of Applicability

The above revision applies to all scheduled employments, including:

  • Agriculture
  • Mines
  • Sweeping and Cleaning
  • Watch and Ward
  • Construction or Maintenance of Roads or Runways or Building Operations
  • Stone Mines
  • Loading and Unloading Operations

Key Points

  • Effective Date: 1st October 2025
  • CPI Base: 2016 = 100
  • CPI Increase: 0.096 points (from 413.424 to 413.52)
  • Resultant VDA Increase: NIL (no change)
  • Applicable Sectors: Agriculture and other scheduled employments

Although the VDA was reviewed in line with the Consumer Price Index (CPI) for Industrial Workers, the marginal increase of 0.096 points did not meet the threshold required to raise the allowance. Hence, no increase in the VDA has been effected for this revision period.

All other contents of the VDA order dated 25.09.2025 remain unchanged.

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