The Labour Department of the Government of Rajasthan on May 2, 2025 has issued an official notification regarding the revision of the Variable Dearness Allowance (VDA) for industrial workers, in accordance with the recommendations of the Engineering Wage Board. This adjustment follows the latest Consumer Price Index (CPI) figures and impacts the wage structure for the period from October 2024 to March 2025.
Key Highlights:
- The VDA is calculated as per the Engineering Wage Board’s formula, which uses the All India CPI base year 1949=100.
- Since the 1949-based CPI series is discontinued, a series of linking factors from the Labour Bureau, Shimla have been used to convert the current CPI (Base 2016=100) to the 1949 base.
- A net increase of 165 points is observed compared to the previous six-month average, leading to a corresponding rise in VDA payable to engineering sector workers.
CPI Conversion Table (Base 1949=100)
| Month/Year | CPI (2016=100) | CPI (2001) | CPI (1982) | CPI (1960) | CPI (1949) | Final CPI (1949 Base) |
| Oct 2024 | 143.2 | 412.42 | 1909.49 | 9413.77 | 11441.49 | 11441 |
| Nov 2024 | 142.8 | 411.26 | 1904.15 | 9387.47 | 11409.53 | 11410 |
| Dec 2024 | 143.0 | 411.84 | 1906.82 | 9400.62 | 11425.51 | 11426 |
| Jan 2025 | 144.5 | 416.16 | 1926.82 | 9499.23 | 11545.36 | 11545 |
| Feb 2025 | 144.5 | 416.16 | 1926.82 | 9499.23 | 11545.36 | 11545 |
| Mar 2025 | 143.7 | 413.86 | 1916.15 | 9446.64 | 11481.44 | 11481 |
| Average | — | — | — | — | — | 11475 |
The average CPI index (1949 base) for October 2024 to March 2025 is 11,475, compared to 11,310 for April to September 2024 — a clear increase of 165 points. This change directly influences the revised VDA rates and is expected to offer financial relief to workers amidst inflation.
The notification underscores the commitment of the Rajasthan Government to maintain fair wage practices and ensure adjustments are aligned with inflationary trends.
