Industrial Relations And Labour Laws
+1 Other

Hello everyone!
Could you confirm if the V.D.A. for Shops and Establishments in Kerala is still 24.90? (As per the 23-07-2009 Minimum Wages Notification).
I was told it has been revised to 43.99. Is that correct? I could not see any notification to this effect.
According to my understanding, DA for December 2011 for Ernakulam will be:
197 minus 130 = 67;
67 x 24.90 = 1668.30
So DA payable = 1668.30
Is this correct?
Thanks in advance :)

From India, Bangalore
VDA applicable to shops and commercial establishments in Kerala remains the same, ie, Rs 24.90 for every point of increase in the Consumer price Index above 130 points. Therefore, your calculation VDA is correct.

From India, Kannur
Thank you very much for the confirmation, Sir! :)
Sir, could you let me know if there is some specific notification or circular or something that instructs us to follow this method of calculating D.A.?
The reason I'm asking is that there was this method of deducting 400 from the estimated indices of the month and then multiplying 1.95 to the result, to get the D.A. for that month. Two people (HR people in local organizations) I asked for advise about the DA calculation here are following this method (which leads to much higher D.A.). I'd been arguing with them that this method is wrong, but they have been following it for a long time and they are not willing to change it. One of them even showed me a Labour Law book that laid out this method immediately after listing the minimum wages for Shops and Establishments (albeit the pre July 2009 rates).
Thanks in advance!

From India, Bangalore
There are two indices, one old series and the other one new series. The VDA may be calculated based on old series or new series. If you calculate DA on old series it is Rs 1.90/1.95 per point above 400 points of CPI and old series will always be high. For example, the Index under old series for Eranakulam is 1835 (it may be old one still) and DA based on that will be calculated on 1435 (1835 minus 400) multiplied by 1.95.

When a series becomes very old, it is common that while fixing the wages and DA rate an amount will be merged to Basic salary and a new series is adapted keeping the same old series alive. There will be a linking factor to it which allows you to change the new series to old one. For example, in the CPI of Eranakulam, the linking factor is 9.92 and by multiplying it by the new index, you will get the old series corresponding to it.

The VDA calculated on both these need not be the same. However, employers who continue to follow the old series can continue with the old series provided the total sum of wages (basic+ VDA) calculated based on old series VDA is not less than the total as prescribed under the new series.



From India, Kannur
Increase of VDA 2019 in kolkata
From India, Bangalore
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