Railway Board Revises Variable Dearness Allowance (VDA) for Contract Workers w.e.f. 01.10.2025
The Ministry of Railways, Government of India, has issued RBE No. 113/2025 on 30th October 2025, announcing a revision in the rates of Variable Dearness Allowance (VDA) for contract workers engaged in various employments and activities. The new rates will be effective from 1st October 2025.
Background of the Circular
The revision comes following the orders issued by the Office of the Chief Labour Commissioner (Central), Ministry of Labour & Employment, through notifications numbered 1/6(1)/2025-LS-II to 1/6(7)/2025-LS-II, all dated 25th September 2025. These notifications revise the VDA applicable to contract workers employed across a wide range of industries and activities.
Categories Covered Under Revised VDA
As per the Railway Board’s order, the updated VDA rates apply to contract workers engaged in the following sectors:
- Agriculture
- Mining Operations, including:
- Gypsum, Barytes, Bauxite, Manganese, China Clay, Kyanite, Copper, Magnesite, Asbestos, Chromite, Quartzite, Silica, Mica, Granite, Marble, Lignite, Uranium, Iron Ore, Dolomite, and several other mineral-based mines.
- Construction and Maintenance Activities such as:
- Building operations, laying of underground communication cables, electric lines, water pipelines, and sewerage works.
- Loading and Unloading Operations in:
- Railway goods sheds and parcel offices, warehouses, docks, ports, and airports.
- Sweeping and Cleaning Services (excluding prohibited manual scavenging activities).
- Watch and Ward Duties (both with and without arms).
- Stone Mines and Similar Employments.
Implementation Across Indian Railways
The Railway Board has directed all Zonal Railways, Production Units, Metro Railway (Kolkata), and Central Organizations to ensure strict compliance with the revised VDA rates.
Being the Principal Employer, Indian Railways must ensure that all contractors adhere to the provisions of:
- The Contract Labour (Regulation & Abolition) Act, 1970, and
- The Minimum Wages Act, 1948,
by paying the prescribed minimum wages along with the revised VDA to contract labourers.
Effective Date and Compliance
The revised VDA rates are effective from 1st October 2025, and all Railway establishments are required to implement the new rates immediately.
This circular was issued with the concurrence of the Finance Directorate, Ministry of Railways, and signed by Shri Peeyush Kapasi, Director (Estt./LL), Railway Board.
Why This Matters
The revision of VDA is a routine but significant step to protect the real income of contract workers against inflation. With this update, thousands of contractual employees working across different railway projects and related industries will benefit from an increase in their minimum payable wages.
The Indian Railways’ proactive implementation ensures fair compensation, better labour welfare, and compliance with statutory wage regulations.
Download Official PDF here: Revised-VDA-Railway-Board-RBE-113-2025