Please share how to calculate VDA Points on which basis we calculate?
From India, Hyderabad
Acknowledge(0)
Amend(0)
1From India, Hyderabad
Acknowledge(0)Amend(0)
There is nothing called VDA Points. VDA - Variable Dearness Allowance is a monetary value that is reviewed based on the policies of organizations/union negotiations, etc. It may undergo a monthly, quarterly, semi-annual, or yearly review process. There is the Consumer Price Index (CPI) against certain base years (1960 = 100, 1982 = 100, etc.). The CPI is published for all of India, state-wise, and important locations in the country.
One should understand the VDA scheme applicable to the specific organization as it varies randomly. Different companies have different base years, review timings (monthly, quarterly, etc.), and neutralization processes, etc.
After obtaining the index value, it needs to be neutralized to a monetary value by multiplying a factor, percentage-wise increase, slab basis, etc.
The usual practice in India is quarterly review and neutralization to a monetary value by a factor. There are index quarter and payable quarter.
My suggestion is to understand all of the above details before beginning the job; otherwise, it will be an improper approach.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
Acknowledge(0)Amend(0)
One should understand the VDA scheme applicable to the specific organization as it varies randomly. Different companies have different base years, review timings (monthly, quarterly, etc.), and neutralization processes, etc.
After obtaining the index value, it needs to be neutralized to a monetary value by multiplying a factor, percentage-wise increase, slab basis, etc.
The usual practice in India is quarterly review and neutralization to a monetary value by a factor. There are index quarter and payable quarter.
My suggestion is to understand all of the above details before beginning the job; otherwise, it will be an improper approach.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
Acknowledge(0)Amend(0)
VDA forms part of Minimum Wages and is calculated based on the Price Index. States publish gazettes on the revision of Minimum Wages and provide VDA applicable at that time. For private organizations, there is no law that mandates having VDA as part of the salary, though some companies do include Dearness Allowance (DA) as part of the salary.
Col. Suresh Rathi
From India, Delhi
Acknowledge(0)Amend(0)
Col. Suresh Rathi
From India, Delhi
Acknowledge(0)Amend(0)
Dear Sir, I need Telangana VDA from 1.4.2022 to 30.9.2022.
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
If you can contact the Labour Bureau, Ministry of Labour & Employment, Government of India (even you can write to them, they will send the information), you will get CPI (Consumer Price Index) numbers for various states as well as the applicable linking factor to arrive at VDA.
Address of Labour Bureau, Shimla is given below:
The Cleremont Building, Chaura Maidan Rd, Chaura Maidan, Shimla, Himachal Pradesh 171004
Another way is to approach the District Industries Centre of your District. Alternatively, you can approach the Economics & Statistics Department, State Government, for getting the information.
From India, Aizawl
Acknowledge(0)Amend(0)
Address of Labour Bureau, Shimla is given below:
The Cleremont Building, Chaura Maidan Rd, Chaura Maidan, Shimla, Himachal Pradesh 171004
Another way is to approach the District Industries Centre of your District. Alternatively, you can approach the Economics & Statistics Department, State Government, for getting the information.
From India, Aizawl
Acknowledge(0)Amend(0)
Dear Bandyopadhyaya,
Good discussion and learnings on VDA, its concept, calculation, particularly for beginners in the profession. Where union LTS exists, it is even more important.
1. Normally, either State or Central Minimum wages are declared yearly or half-yearly based on CPI Shimla series. Depending on the notification, VDA or CLA should be reckoned.
2. Where LTS exist, after certain points, there will be neutralization, and above those points, certain figures of rupees will be fixed and calculated. Normally, this occurs every quarter in most LTS.
3. In many states, minimum wage notifications consider an increase of certain paise per point above a specific Index or CPI, arriving at the particular years of DA or Cost of Living Allowance.
Following is the link regarding Minimum Wages of Karnataka 2022-23, showing an increase of Rs. 510 for the year 2022-23 based on the calculation. To understand, view the video on YouTube with the following link:
Karnataka Minimum wage 2022-23. Be aware of enhancement (Rise)
https://www.youtube.com/watch?v=UwDe3jh6zg4
Thanks,
Ram K Navaratna HR Resonance
From India, Bangalore
Acknowledge(0)Amend(0)
Good discussion and learnings on VDA, its concept, calculation, particularly for beginners in the profession. Where union LTS exists, it is even more important.
1. Normally, either State or Central Minimum wages are declared yearly or half-yearly based on CPI Shimla series. Depending on the notification, VDA or CLA should be reckoned.
2. Where LTS exist, after certain points, there will be neutralization, and above those points, certain figures of rupees will be fixed and calculated. Normally, this occurs every quarter in most LTS.
3. In many states, minimum wage notifications consider an increase of certain paise per point above a specific Index or CPI, arriving at the particular years of DA or Cost of Living Allowance.
Following is the link regarding Minimum Wages of Karnataka 2022-23, showing an increase of Rs. 510 for the year 2022-23 based on the calculation. To understand, view the video on YouTube with the following link:
Karnataka Minimum wage 2022-23. Be aware of enhancement (Rise)
https://www.youtube.com/watch?v=UwDe3jh6zg4
Thanks,
Ram K Navaratna HR Resonance
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Mr. Ram K Navaratna,
As per the original post, it was not asked about VDA under Minimum Wages. Whatever I have explained in my earlier post is based on VDA applicable to some organizations by unions bargaining/age-old practice, bank/government employees, etc., regarding VDA revision.
I fully agree that there is VDA linked to minimum wages, and most of the states review it semi-annually. I appreciate all posts that have highlighted VDA linked to Minimum wages.
I started my career in 1976, and in those days, I noticed that different chambers of commerce (Bombay, Bengal, Madras, etc.) were declaring VDA, which was reviewed on a monthly basis, and payable months had a one-month gap from the index month. The formula was: for the 1st hundred of the basic, it was x%, for the 2nd 100 of the basic, it was 0.5x%, and for the 3rd 100 and onwards of the basic, it was 0.25x%. With an increase in the index value, there was a change in the value of x by a different formula which I cannot remember at this moment. Even today, the VDA calculation method is different in banks, central government, state governments, etc. I have no idea, but probably some organizations in India that are paying VDA may review it semi-annually as per Minimum Wages VDA.
I once again appreciate the learned members for their contribution to VDA under Minimum Wages.
Warm Regards,
S K Bandyopadhyay (HOWRAH, WB) CEO - USD HR Solutions +91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Acknowledge(0)Amend(0)
As per the original post, it was not asked about VDA under Minimum Wages. Whatever I have explained in my earlier post is based on VDA applicable to some organizations by unions bargaining/age-old practice, bank/government employees, etc., regarding VDA revision.
I fully agree that there is VDA linked to minimum wages, and most of the states review it semi-annually. I appreciate all posts that have highlighted VDA linked to Minimum wages.
I started my career in 1976, and in those days, I noticed that different chambers of commerce (Bombay, Bengal, Madras, etc.) were declaring VDA, which was reviewed on a monthly basis, and payable months had a one-month gap from the index month. The formula was: for the 1st hundred of the basic, it was x%, for the 2nd 100 of the basic, it was 0.5x%, and for the 3rd 100 and onwards of the basic, it was 0.25x%. With an increase in the index value, there was a change in the value of x by a different formula which I cannot remember at this moment. Even today, the VDA calculation method is different in banks, central government, state governments, etc. I have no idea, but probably some organizations in India that are paying VDA may review it semi-annually as per Minimum Wages VDA.
I once again appreciate the learned members for their contribution to VDA under Minimum Wages.
Warm Regards,
S K Bandyopadhyay (HOWRAH, WB) CEO - USD HR Solutions +91 98310 81531
From India, New Delhi
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Share saving calculation.xls
5 How to submit the entries for Talent Share 2008.jpg