The Railway Board has notified a revision in the Variable Dearness Allowance (VDA) for contract workers engaged in various categories of employment, effective October 1, 2026.
In an order dated October 28, the Railway Board issued instructions to all zonal railways, production units and other railway establishments to implement the revised rates in line with the Labour Bureau and the Ministry of Labour and Employment’s order dated September 30, 2026.
The revised VDA applies to contract workers engaged in agriculture, mining, construction and maintenance activities, sweeping and cleaning, watch and ward services, and loading and unloading operations, among other specified categories.
The covered mining activities include work in iron ore, coal-related minerals such as lignite, granite, marble, mica and several other mineral mines. Construction-related activities include road and runway construction or maintenance, building operations, and the laying of underground cables, electric lines, water supply lines and sewerage pipelines.
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The revision also covers workers engaged in sweeping and cleaning, excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993, as well as watch and ward personnel, with or without arms.
Loading and unloading workers covered by the order include those employed at railway goods sheds and parcel offices, warehouses, docks and ports, and in handling passengers’ goods and cargo at domestic and international airports.
The Railway Board has directed the concerned railway authorities to ensure strict compliance with applicable labour codes and that contractors pay contract workers the prescribed minimum wages.
The order was issued with the concurrence of the Finance Directorate of the Ministry of Railways.
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