Dear Seniors, Could any one explain me how COLA - Cost of living adjustment component can be calculated and included in a salary structure Regards, Mahesh
From India, Pune
1From India, Pune
For each scheduled employment Variable Dearness Allowance has been declared by the state government following the provisions of the Minimum Wages Act. The VDA is linked to the Cost of Living Index number. The VDA will be same for all employees under one industry/ scheduled employment. It may be like Rs 1.60 per month for every point of CPI (Consumer price Index) above say 400 points and so on and if the present CPI is 1567 then the VDA will be Rs 1.6 multiplied by 1167 (1567-400).
For a clear understanding it is necessary to know the employment in which your establishment falls. Please verify the present CPI and find what is stated in the Minimum Wages notification concerning your organisation.
Regards,
Madhu.T.K
From India, Kannur
For a clear understanding it is necessary to know the employment in which your establishment falls. Please verify the present CPI and find what is stated in the Minimum Wages notification concerning your organisation.
Regards,
Madhu.T.K
From India, Kannur
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COST OF LIVING INDEX NUMBER FOR EMPLOYEES.pdf
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