Labour Department Rajasthan Brief on Variable Dearness Allowance Revision payable under the Engineering Wage Board

Nov 27, 2025 | by TeamLease RegTech Legal Research Team

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Labour ComplianceThe Labour Department, Government of Rajasthan (LRD), on November 03, 2025, issued a notification revising the Variable Dearness Allowance (VDA) payable under the Engineering Wage Board recommendations. The revision follows the transition to the new Consumer Price Index (CPI) series (Base 2016=100), introduced from September 2020, which discontinued all previous base-year index series.

The Department recalculated the All-India Consumer Price Index Numbers with Base Year 1949=100 using a series of officially approved linking factors—2.88 (2016→2001), 4.63 (2001→1982), 4.93 (1982→1960), and 1.2154 (1960→1949). Based on these linkage calculations, the average CPI for April–September 2025 was determined as 11630, compared to 11475 for the previous period (October 2024–March 2025), resulting in an increase of 155 points. This upward movement necessitates a corresponding rise in VDA for workers under the Engineering Wage Board.

The Labour Department clarified that the revised CPI figure shall be used for determining the updated VDA payable to eligible workers across Rajasthan. These revised rates take effect immediately as per the norms applicable to the Engineering Wage Board framework.

[Notification No.: St/CPI/Eng.Wage Board/75/Pt.]

 


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