Kindly tell me about variable DA calculations in resepct of Pvt Ltd Co. in Calicut District. Also, the point converting formula.
From India, Pune
1From India, Pune
Variable DA is based on consumer price index. Under Minimum Wages Act and rules framed thereunder a base year pertaining to the industry will be mentioned. Say, for Plywood Industry a particular base index, for Engineering Industry another base and so on. Similarly, DA rate will also be there. Take the CPI and the points above the base will be multiplied by the DA rate per day or month, as the case may be to get the VDA. The base index may be 100 or 200 or 250 for which you have to see the minimum wages of the respective industry. It is irrelevant whether the company is constituted as Private Ltd or Public Ltd or Partnership. What is relevant is the industry to which the firm belongs to. If the base is 100 and if the present CPI (I don't know the present indices) is 130 and if the rate of DA is Rs 5 per day, then the VDA will be Rs 150 per day ( 30, the points by which the CPI exceeded the base index, multiplied by Rs 5)
Please get the DA rate applicabe to your firm ( sector) and find the base over and above of which DA is to be calculated from the District Labour Office. Take the present Cost of Living Index from the Bureau of Economics and Statistics. Calculate VDA.
Since VDA is based on a CPI and on a rate applicable to all firms in a particular industry, say plywood, it will be uniform through out the industry and irrespective of category of employees.
Regards,
Madhu.T.K
From India, Kannur
Please get the DA rate applicabe to your firm ( sector) and find the base over and above of which DA is to be calculated from the District Labour Office. Take the present Cost of Living Index from the Bureau of Economics and Statistics. Calculate VDA.
Since VDA is based on a CPI and on a rate applicable to all firms in a particular industry, say plywood, it will be uniform through out the industry and irrespective of category of employees.
Regards,
Madhu.T.K
From India, Kannur
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Variable DA on Minimum Wages as on 01-10-2017.pdf
VARIABLE PAY.doc