Dear Mr. Ramesan,
If you think that VDA and CPI can be explained in one or two paragraphs, then I am sorry to say that you have greatly mistaken. Your question may be very simple, but trust me, the answer is really very difficult to explain. Even if I explain, you would not be able to understand, as VDA is a huge and complicated area. I can guarantee that not many HR people across India, and I mean India, have an in-depth knowledge of VDA. I doubt whether anyone in this forum would be able to make you understand the entire nuances of VDA calculation. So, my suggestion would be that you find some person in your area who is an industrial and labor law expert and who deals with such matters in his own company and discuss the matter with him. I think that would be the ideal solution for you.
Regards
From India, New Delhi
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10If you think that VDA and CPI can be explained in one or two paragraphs, then I am sorry to say that you have greatly mistaken. Your question may be very simple, but trust me, the answer is really very difficult to explain. Even if I explain, you would not be able to understand, as VDA is a huge and complicated area. I can guarantee that not many HR people across India, and I mean India, have an in-depth knowledge of VDA. I doubt whether anyone in this forum would be able to make you understand the entire nuances of VDA calculation. So, my suggestion would be that you find some person in your area who is an industrial and labor law expert and who deals with such matters in his own company and discuss the matter with him. I think that would be the ideal solution for you.
Regards
From India, New Delhi
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Mr. Rao is correct in terms of the continuous leave if the person avails leave on the preceding and succeeding the paid festival or national holiday. The total leave will be calculated as 3 days leave, and it will be deducted from the person's leave credit.
K. Gopalakrishnan
From India, Bangalore
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K. Gopalakrishnan
From India, Bangalore
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Dear Awvik, Thank you for your timely intervention and making this point very clear. Also can you help me to find out any good books where I can sharpen my knowledge in this part
From India, Tiruppur
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From India, Tiruppur
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Dear Ramesan,
Thank you very much for understanding my point. Sorry to say once again that no book gives you a detailed understanding of VDA. At least I haven't seen one. You have to know it from someone who is dealing in this matter. I myself did that and that's when I realized what VDA is all about. It's a huge area, and no book can explain in such detail. You need to know a lot of things to understand what VDA is all about. Only then can you start thinking of the calculation of VDA.
Regards
From India, New Delhi
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Thank you very much for understanding my point. Sorry to say once again that no book gives you a detailed understanding of VDA. At least I haven't seen one. You have to know it from someone who is dealing in this matter. I myself did that and that's when I realized what VDA is all about. It's a huge area, and no book can explain in such detail. You need to know a lot of things to understand what VDA is all about. Only then can you start thinking of the calculation of VDA.
Regards
From India, New Delhi
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Mr. Ramesan,
You can develop the formula as per the below guidelines.
A = S x (Xn - Xo) / Xo
A = Amount to be added in VDA in the quarter under consideration.
S = Basic
X0 = Base CPI Index (Reference index)
Xn = Revised CPI Index during the quarter under consideration.
From India, Lucknow
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You can develop the formula as per the below guidelines.
A = S x (Xn - Xo) / Xo
A = Amount to be added in VDA in the quarter under consideration.
S = Basic
X0 = Base CPI Index (Reference index)
Xn = Revised CPI Index during the quarter under consideration.
From India, Lucknow
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Dear Mr. Ponraj,
Brilliant! I never knew that the calculation of VDA was so easy. Now, could you please tell me, if my basic is 3000, Xn = 1000, and Xo = 1020, what would be the amount added to my existing VDA?
Eagerly waiting for your reply.
Regards
From India, New Delhi
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Brilliant! I never knew that the calculation of VDA was so easy. Now, could you please tell me, if my basic is 3000, Xn = 1000, and Xo = 1020, what would be the amount added to my existing VDA?
Eagerly waiting for your reply.
Regards
From India, New Delhi
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Mr. Avik,
Thank you for your (sarcastic) reply. I am not aware of how the VDA is being revised every quarter. The guideline formula that I provided is used to calculate the escalation amount of the contract price for the price variation of inputs.
From India, Lucknow
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Thank you for your (sarcastic) reply. I am not aware of how the VDA is being revised every quarter. The guideline formula that I provided is used to calculate the escalation amount of the contract price for the price variation of inputs.
From India, Lucknow
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Mr. Ponraj,
Please understand that VDA is not an easy subject. Please don't post such things about which you are not confident and which may lead to further confusion. Let people know the hard way; otherwise, it may lead to serious problems in the future for the new generation of HR professionals.
Regards,
By the way, sorry for the sarcasm.
From India, New Delhi
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Please understand that VDA is not an easy subject. Please don't post such things about which you are not confident and which may lead to further confusion. Let people know the hard way; otherwise, it may lead to serious problems in the future for the new generation of HR professionals.
Regards,
By the way, sorry for the sarcasm.
From India, New Delhi
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I agree. It is quite a detailed subject. Moreover, it is complicated by the fact that there are systems (salary & wages administration policy) with 100% neutralization of DA and some where it is not so. In addition to it, DA for Govt. employees is administered in a different way; whereas it is different for, say, PSUs which are in the manufacturing/industrial sector; based on the All India Consumer Price Index Number for Industrial Workers. Right, Awvik?
From India, Delhi
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From India, Delhi
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