Can anyone please share the VDA Notification copy w.e.f. 01.10.2013 and also please tell how to calculate the vda point rate
From India, Hyderabad
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5From India, Hyderabad
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Dear friends,
The Industrial DA notification can be available from the official website of the Department of Public Enterprises under the Ministry for Heavy Industries. I shall give a brief on the calculation and related details.
Considering the living cost and all, Wage Revision is being done once in five years or ten years. However, inflation will rise day by day, and subsequently, the value of money will decrease. To compensate for this, we have to wait until the next Wage Revision, which is not practical. That is why the DA is introduced.
The devaluation of money can be assessed through the Wholesale Price Index, All India Consumer Price Index, etc. The difference between these two is that the price variation of all commodities is taken into account for the Wholesale Price Index.
For AICPI, there are some differences/limitations:
1. There is a particular Consumer, viz., Industrial Worker.
2. Some specified goods & services are defined, called the "basket of goods."
3. Along with the price variation of commodities, its consumable quantity will also be considered.
4. All over India, 78 Centers are selected to take an average.
Based on the All India Consumer Price, Industrial DA is being paid; variable in quarters commencing from January, April, July & October. i.e. for January, the AICPI will be the average of the previous September, October & November. Similarly, for April, it will be December, January & February, for July it will be March, April & May, and for October, it will be June, July & August, respectively.
When the money devaluation is fully compensated, it is called full DA neutralization. The formula for full DA neutralization = (Total points - Base points) / Base points (in percentage). The AICPI was introduced in India in 1960 and revised in 1982 & 2001. AICPI of 2001 x 4.63, we get AICPI of 1982 and AICPI of 1982 x 4.93, we get AICPI of 1960. For DA calculation, AICPI of 1960 is accepted as the base.
Now in India, mainly two wage settlement terms are in existence; Wage Settlements of 1.1.1997 & 1.1.2007. The base point in 1.1.1997 is 1708 and in 1.1.2007 is 2884.
I shall quote one example, i.e., calculation of AICPI for July '10. This is equivalent to the average of the previous March, April & May; which is recorded as 170, 170 & 172 (Base year 2001). Multiply by 4.63 and round, we get 787, 787 & 796 (Base year 1982). Multiply by 4.93 and round, we get 3880, 3880 & 3924 (Base year 1960). Find the average of these 3 and round, we get 3895.
DA for 1.1.97 scale. Total points - 3895, Base points - 1708, Total - Base = 2187. % is 2187/1708 x 100 = 128.0 (Correct to one decimal).
DA for 1.1.2007 scale. Total points - 3895, Base points - 2884, Total - Base = 1011. % is 1011/2884 x 100 = 35.1 (Correct to one decimal).
With regards,
ABBAS.P.S,
ITI Limited, PALAKKAD - 678 623,
KERALA, INDIA.
+91 9447 467 667
From India, Bangalore
Acknowledge(0)Amend(0)
The Industrial DA notification can be available from the official website of the Department of Public Enterprises under the Ministry for Heavy Industries. I shall give a brief on the calculation and related details.
Considering the living cost and all, Wage Revision is being done once in five years or ten years. However, inflation will rise day by day, and subsequently, the value of money will decrease. To compensate for this, we have to wait until the next Wage Revision, which is not practical. That is why the DA is introduced.
The devaluation of money can be assessed through the Wholesale Price Index, All India Consumer Price Index, etc. The difference between these two is that the price variation of all commodities is taken into account for the Wholesale Price Index.
For AICPI, there are some differences/limitations:
1. There is a particular Consumer, viz., Industrial Worker.
2. Some specified goods & services are defined, called the "basket of goods."
3. Along with the price variation of commodities, its consumable quantity will also be considered.
4. All over India, 78 Centers are selected to take an average.
Based on the All India Consumer Price, Industrial DA is being paid; variable in quarters commencing from January, April, July & October. i.e. for January, the AICPI will be the average of the previous September, October & November. Similarly, for April, it will be December, January & February, for July it will be March, April & May, and for October, it will be June, July & August, respectively.
When the money devaluation is fully compensated, it is called full DA neutralization. The formula for full DA neutralization = (Total points - Base points) / Base points (in percentage). The AICPI was introduced in India in 1960 and revised in 1982 & 2001. AICPI of 2001 x 4.63, we get AICPI of 1982 and AICPI of 1982 x 4.93, we get AICPI of 1960. For DA calculation, AICPI of 1960 is accepted as the base.
Now in India, mainly two wage settlement terms are in existence; Wage Settlements of 1.1.1997 & 1.1.2007. The base point in 1.1.1997 is 1708 and in 1.1.2007 is 2884.
I shall quote one example, i.e., calculation of AICPI for July '10. This is equivalent to the average of the previous March, April & May; which is recorded as 170, 170 & 172 (Base year 2001). Multiply by 4.63 and round, we get 787, 787 & 796 (Base year 1982). Multiply by 4.93 and round, we get 3880, 3880 & 3924 (Base year 1960). Find the average of these 3 and round, we get 3895.
DA for 1.1.97 scale. Total points - 3895, Base points - 1708, Total - Base = 2187. % is 2187/1708 x 100 = 128.0 (Correct to one decimal).
DA for 1.1.2007 scale. Total points - 3895, Base points - 2884, Total - Base = 1011. % is 1011/2884 x 100 = 35.1 (Correct to one decimal).
With regards,
ABBAS.P.S,
ITI Limited, PALAKKAD - 678 623,
KERALA, INDIA.
+91 9447 467 667
From India, Bangalore
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