Employers can defer VDA payment until next March

Giving relief to employers, the Labour department has permitted establishments to defer payment of variable dearness allowance (VDA) to their employees until March next year.

In an order, the department has said that employers will have time till March 31, 2021 (effective from April 1, 2020), to pay VDA to their workers.

This will apply to all workers under the purview of the minimum wages notification. The department has taken this decision even as the Centre had directed all employers to pay wages including VDA to their employees during the lockdown period.

According to the department, considering the hardship faced by the organisations, this decision was made.