Dear All, Can anybody explain what is the difference between Industrial VDA and Minimum Wages VDA? Why base year for Industrial VDA and why not for Minimum Wages VDA. Can anybody explain?
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Basically, there is no difference. The base year is essentially for publishing the index. The base year is changed from time to time based on prices in the market and changes in consumption patterns. VDA is nothing but the neutralization of the index in terms of money. It may be percentage-wise or per point neutralization. There are other methods of neutralizing the index in different organizations where the union, through bargaining, settles the remuneration. Minimum wages also have a base year for publishing the index and neutralize it by monetary value.
S K Bandyopadhyay (WB, Howrah)
[Website: www.usdhrs.in](https://www.usdhrs.in)
From India, New Delhi
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S K Bandyopadhyay (WB, Howrah)
[Website: www.usdhrs.in](https://www.usdhrs.in)
From India, New Delhi
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Sir,
Industrial VDA will be calculated based on CPI points. Is this the same as the minimum wages VDA notified by the government every six months? CPI points are declared monthly, and the average of three months will be taken to calculate industrial VDA. Could you please elaborate and explain?
Regards,
HR
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Industrial VDA will be calculated based on CPI points. Is this the same as the minimum wages VDA notified by the government every six months? CPI points are declared monthly, and the average of three months will be taken to calculate industrial VDA. Could you please elaborate and explain?
Regards,
HR
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VDA may be reviewed on a monthly basis, quarterly basis, semi-annually, or annually. CPI is the Consumer Price Index published every month. Industrial VDA is calculated based on the quarterly average difference and neutralized by a certain monetary value for increase or decrease. On the other hand, minimum wages VDA is calculated based on the semi-annual average difference and neutralized by a certain monetary value, which also varies from state to state.
I have personal knowledge about many organizations where VDA is revised semi-annually or annually with double linkage - related to the basic slab as well as the CPI index. Some organizations review VDA percentage-wise - for example, a 10-point increase in CPI against any specific base year results in a 5% increase in VDA on the existing amount (reviewed quarterly/semi-annually/annually), and so forth. Previously, I have observed even monthly VDA reviews conducted by organizations like the Bombay Chamber of Commerce and Bengal Chamber of Commerce.
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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I have personal knowledge about many organizations where VDA is revised semi-annually or annually with double linkage - related to the basic slab as well as the CPI index. Some organizations review VDA percentage-wise - for example, a 10-point increase in CPI against any specific base year results in a 5% increase in VDA on the existing amount (reviewed quarterly/semi-annually/annually), and so forth. Previously, I have observed even monthly VDA reviews conducted by organizations like the Bombay Chamber of Commerce and Bengal Chamber of Commerce.
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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