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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
From India, Bhopal
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
From India, Bhopal
Dear,
VDA is a benefit given to employees to meet the expenses for rise in prices and is directly related to the CPI (Consumer price Index) that is published by the Shimla Labour Bureau on a monthly basis. Currently there are three base years viz; 1960=100, 1982=100 and 2001=100 on which the VDA is calculated. Organizations those who give VDA to employees can use anyone of the base years for their calculation of VDA. Generally the union and the management sit together and decide as to what would be the neutralizing factor for each point rise or fall in the CPI e.g. Rs 2/- per point or Rs 3/- per point etc. Once that is decided, then for each month we multiply the rise or fall in CPI to the netralizimg factor and accordingly pay the VDA. Thus VDA is variable as the name suggests and it can rise or fall for every month.
It sounds a bit confusing but VDA is a vast concept and it's really difficult to give such answers here. Hope you understand.
Regards
From India, New Delhi
VDA is a benefit given to employees to meet the expenses for rise in prices and is directly related to the CPI (Consumer price Index) that is published by the Shimla Labour Bureau on a monthly basis. Currently there are three base years viz; 1960=100, 1982=100 and 2001=100 on which the VDA is calculated. Organizations those who give VDA to employees can use anyone of the base years for their calculation of VDA. Generally the union and the management sit together and decide as to what would be the neutralizing factor for each point rise or fall in the CPI e.g. Rs 2/- per point or Rs 3/- per point etc. Once that is decided, then for each month we multiply the rise or fall in CPI to the netralizimg factor and accordingly pay the VDA. Thus VDA is variable as the name suggests and it can rise or fall for every month.
It sounds a bit confusing but VDA is a vast concept and it's really difficult to give such answers here. Hope you understand.
Regards
From India, New Delhi
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
From India, Bangalore
Dear Sudhir and Monica,
You can include trainees along with apprentice who are normally not eligible for VDA.
No there is no fixed rule as far as type of industry is concerned but Minimum Wages Act states that the minimum wages as per law and VDA has to be paid to all employees except above stated.
Note: There is a major Supreme Court judgement 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 case of payment of VDA.
Regards
From India, New Delhi
You can include trainees along with apprentice who are normally not eligible for VDA.
No there is no fixed rule as far as type of industry is concerned but Minimum Wages Act states that the minimum wages as per law and VDA has to be paid to all employees except above stated.
Note: There is a major Supreme Court judgement 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 case of payment of VDA.
Regards
From India, New Delhi
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MW - VDA - April '16 - March '17.pdf
AP VDA-April to Sept-2015-Press Note.jpg