CPI & WPI its influence on wage components

alwar · #11 30-08-2009, 08:18 PM

What is VDA?

Girish Lal · #12 30-08-2009, 08:19 PM

As per section 79 of factories Act 1948 ,incase of Earned leaves holidays needs to be excluded.

Regards,
Girish

Raj Kumar Hansdah · #13 31-08-2009, 01:30 AM

My dear Awvik

It is amazing to find such lack of awareness.

Please do something about it by explaining in detail.

VDA - Variable Dearness Allowance (which is based on CPI)
CPI - Consumer Price Index (which is tracked every week by NCAER, FinMin).

VDA is in addition to FDA (Fixed Dearness Allowance) and is the variable component of DA.
VDA changes every quarter (which is notified) as a percentage change to CPI.

Regards.

Quote:

Originally Posted by Awvik

Dear Mr. ant 1511

So I guess that Mr. Rao is not correct on the VDA part

Any comments, please go ahead.

regards

Awvik · #14 31-08-2009, 09:20 AM

Dear Mr. Hansdah,

That's the problem with a few members in this site. They are so confident about themselves that they don't really bother what comments they are posting. They don't realize that what they are posting is affecting the new generation of HR professionals who are not aware of such complicated matters such as VDA or CPI. They are getting the wrong information which in turn is affecting there HR knowledge.

By the way I have posted earlier on matters related to VDA and CPI. So if anyone is interested he or she can check with my earlier post.

Regards

RAMESHANPT · #15 31-08-2009, 11:16 AM

Again can any one explain the mathematical relationship between CPI & VDA. On increase of how many points we should raise wages at what rate

Awvik · #16 31-08-2009, 11:36 AM

Dear Mr. Ramesan,

If you think that VDA and CPI can be explained in one or two paragraphs then I am sorry to say that you have hugely mistaken. Your question may very simple but trust me the answer is really very difficult to explain. Even if I explain you would not be able to understand as VDA is a huge and complicated area. I can guarantee that not many HR people across India and I mean India, has an indepth knowledge of VDA. I doubt whether anyone in this forum would be able to make you understand the entire nuances of VDA calculation So my suggestion would be that you find some person in your area who is an industrial and labour law expert and who deals with such matters in his own company and discuss the matter with him. I think that would the ideal solution for you.

Regards

K. Gopalakrishnan · #17 01-09-2009, 09:07 AM

Mr.Rao is correct in terms of the continuous leave, if the person avails leave on preceding and succeeding the paid festival or national holiday. The total leave will be calculated as 3 days leave and it will be deducted from the person's leave credit.

K. Gopalakrishnan

RAMESHANPT · #18 01-09-2009, 10:07 AM

Dear Awvik,

Thank you for your timely intervention and making this point very clear. Also can you help me to find out any good books where I can sharpen my knowledge in this part

Awvik · #19 01-09-2009, 11:07 AM

Dear Ramesan,

Thank you very much for understanding my point. Sorry to say once again that no book gives you a detailed understanding of VDA. At least I haven't seen one. You have to know it from someone who is dealing in this matter. I myself did that and that's when I realized what VDA is all about. It's a huge area and no book can explain in such details. You need to know a lot of things to understand what VDA is all about. Then only you can start thinking of calculation of VDA.

Regards

pon1965 · #20 01-09-2009, 11:35 AM

Mr.Ramesan,

You can develop the formula as per below guidelines.

A = S x (Xn-Xo)/Xo

A = Amount to be added in VDA in the quarter under consideration.
S = Basic
X0 = Base CPI Index (Reference index)
Xn = Revised CPI Index during the quarter under consideration.