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dear as consumer price index increases/decreases government give benefit to empoyee to meet the expenses of inflation.this is given as a variable dearness allowance. tks j s malik
From India, Delhi
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From India, Delhi
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hi sir is it applicable for all type of employee means contract, trainee, apprentice, or it is depend upon company pls give some detail information about DA/VDA BR/
From India, Bhopal
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From India, Bhopal
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hi, Sir is it applicable for all type of employee such as contract, trainee, apprentice or its depend upon company please give some detail information about DA/VDA. BR/
From India, Bhopal
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From India, Bhopal
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dear VDA is applicable to all workmen including trainees but it is not applicable to apprentice hired under apprenticeship act. tks j s malik
From India, Delhi
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From India, Delhi
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Dear,
VDA is a benefit given to employees to meet the expenses for the rise in prices and is directly related to the CPI (Consumer Price Index) published by the Shimla Labour Bureau on a monthly basis. Currently, there are three base years, namely 1960=100, 1982=100, and 2001=100, on which the VDA is calculated. Organizations that provide VDA to employees can choose any of the base years for their VDA calculations. Generally, the union and management collaborate to determine the neutralizing factor for each point rise or fall in the CPI, for example, Rs 2/- per point or Rs 3/- per point. Once this is decided, for each month, we multiply the rise or fall in the CPI by the neutralizing factor and make VDA payments accordingly. Thus, VDA is variable as the name suggests, and it can rise or fall every month.
I understand that VDA is a complex concept, and providing detailed explanations here can be challenging. I hope this clarifies the concept for you.
Regards
From India, New Delhi
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VDA is a benefit given to employees to meet the expenses for the rise in prices and is directly related to the CPI (Consumer Price Index) published by the Shimla Labour Bureau on a monthly basis. Currently, there are three base years, namely 1960=100, 1982=100, and 2001=100, on which the VDA is calculated. Organizations that provide VDA to employees can choose any of the base years for their VDA calculations. Generally, the union and management collaborate to determine the neutralizing factor for each point rise or fall in the CPI, for example, Rs 2/- per point or Rs 3/- per point. Once this is decided, for each month, we multiply the rise or fall in the CPI by the neutralizing factor and make VDA payments accordingly. Thus, VDA is variable as the name suggests, and it can rise or fall every month.
I understand that VDA is a complex concept, and providing detailed explanations here can be challenging. I hope this clarifies the concept for you.
Regards
From India, New Delhi
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Hello sir, Is their any fixed rules by the governament to pay the minimum Basic & VDA for employees depeinding upon the type of industry, tnks monica:icon12:
From India, Bangalore
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From India, Bangalore
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Dear Sudhir and Monica,
You can include trainees along with apprentices who are normally not eligible for VDA. There is no fixed rule as far as the type of industry is concerned, but the Minimum Wages Act states that the minimum wages as per law and VDA have to be paid to all employees except as stated above.
Note: There is a major Supreme Court judgment that states if agreed upon by mutual discussion, then the neutralizing factor can be less for people working in higher grades and vice versa in the case of VDA payment.
Regards
From India, New Delhi
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You can include trainees along with apprentices who are normally not eligible for VDA. There is no fixed rule as far as the type of industry is concerned, but the Minimum Wages Act states that the minimum wages as per law and VDA have to be paid to all employees except as stated above.
Note: There is a major Supreme Court judgment that states if agreed upon by mutual discussion, then the neutralizing factor can be less for people working in higher grades and vice versa in the case of VDA payment.
Regards
From India, New Delhi
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The Tamil Nadu Minimum Wages Dearness Allowance Notification March 2019.pdf