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Karnataka Defers Payment Of VDA Payable Effective 1st April 2020 - The Minimum Wages Act, 1948

Government of Karnataka vide order no. KaE 72 LWA 2020 dated 20th July 2020 has passed resolution towards postponing the VDA payable from 1st April 2020 to 31st March 2021 to mitigate the hardship being faced by the employers who were directed by the Central Government to pay wages, including VDA to their employees for the lockdown period. Employers who already started paying the VDA may continue to do so along with all the statutory contributions and payments. Employers who are yet to provide the minimum wages effective April 2020 may avail of this benefit provided by the government. Since this is only a postponement, the government may revoke this notification in the future and may advice the employers to pay the minimum wages as per the VDA applicable effective 1st April 2020 along with arrears.

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