Madhu.T.K
Industrial Relations And Labour Laws
[email protected]
Sr. Manager Ir
+3 Others

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hi, i am new to Hr so i dont no much about the DA calculation,
i think it is calculate on the basis of consumer price index, ours is a seafood expoting company in kerala, can anyone help me in finding kerala "s CPI and based on that how to calculate DA

From India, Kochi
For each scheduled employment variable Dearness Allowance has been fixed by the government. The VDA will be a certain amount which is calculated on every increase in the consumer price index over and above a fixed base index. It may be Rs 24 for every increase in the CPI above 130 points, or like. If the CPI is 167 (new series) for your district, then the VDA will be 24 X 37 (ie, the point of increase in CPI over 130 base index), Rs 888 per month. Different VDA is also fixed for daily rated workers. There are two indices, new series and old series. Some firms take the DA on old series whereas some other firms take DA on new series of CPI. Find out the practice being followed in sea food exporting industry and follow the practice. For DA please refer to the Minimum Wages notification in respect of your industry and for CPI contact the Bureau of Economics and Statistics. The Chamber of Commerce use to publish CPI of all the districts in Kerala on a monthly basis. You can contact them also.

Regards,

Madhu.T.K

From India, Kannur
How can the DA be calculated for an educational institute in Mumbai for a faculty? Is it calculated every month or every year or as per the changes in the consumer price index?
From India, Mumbai
The CPI Points will be revised on a monthly basis, so do we need to revise the Salaries also on a monthly basis. Please clarify.
From India, Bangalore
In states like Tamil Nadu, Karnataka etc, the system is to calculate the VDA based on the average of CPI of the preceding year. Accordingly, the VDA of each scheduled industry will be published by the Government in March every year and that will be kept uniform fro the entire year starting from April to March. In states where the fixation is for every six months, you can follow that. Otherwise, you will have to vary the wages every month based on the CPI of the month.
Madhu.T.K

From India, Kannur
In Kerala, DA is revised every month based on changes in consumer price index. Madhu.T.K
From India, Kannur
It is very difficult to 'arrange to provide for a DA calculation' as per your demand because DA differs from industry to industry and from city to city. Therefore, what you have to do is to find the relevant industry and know what is the rate of DA and the index above which the DA will be available to employees, then find out the CPI of the city where your establishment is located and then calculate DA.
Madhu.T.K

From India, Kannur
Please guide me on VDA in Maharashtra increase graph. Regards Govind Pawar
From India, Mumbai
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