Umakanthan53
Labour Law & Hr Consultant

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What is meant by VDA - VDA is money back system?
From India, Chennai
Dear Amal Krishnan,
I am not able to understand what you mean by " money back system " and why you link it to V.D.A. The abbreviation " V.D.A " generally means " variable dearness allowance ". In the system of wage and salary administration in Public and Private employments it refers to the method of computing and paying dearness allowance to employees in tune with the periodical variation in the general price level prevailing in the economy. I do hope that you understand the actual meaning of dearness allowance in the wage/salary structure of employees and hence leave its explanation to yourself. In any economy, prices of goods and services do not remain static; they change i.e., raise or fall depending upon market conditions. Self-employed people are capable of making adjustments in their incomes accordingly. But, salaried people can not withstand steep rise in the prices for it would adversely affect their real income. To off-set this factor, the element of variability is introduced by linking their dearness allowance to any Cost of Living Index and then it is called variable dearness allowance or V.D.A for short.

From India, Salem
hi sir, in Delhi state government increase MW in Oct 2016 by 37% . It was challenged in Delhi High court by the employer association and pending for judgement. In the mean time state govt increased two time VDA. I want to under stand that the VDA is linked any kind with the MW fixed by the state government in Oct 2016. Because our worker demanding VDA increased. In a simple word we are liable to pay VDA till the final out come of the Writ petition or note. Kindly advise.
From India, Hyderabad
Dear friend,
The V.D.A is linked to the All India Consumer Price Index ( Base year 2001=100) in respect of minimum wages by the Delhi State Govt. Whenever, some employers approach the High Courts against such fixation, they may or may not grant interim stay. However, if any stay is granted, it would apply only to the writ petitioners and not to all. If your establishment is not a party to the writ, you have to implement the revision of V.D.A periodically as per the notification till the writ is finally disposed off by the Court.

From India, Salem
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