Madhu.T.K
Industrial Relations And Labour Laws
Ravic114
General Manager
EndtoEnd HR
Hr Consultant
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Hi, can any body help me with the circular on Minimum wages of Kerala for IT sector ? Also if anybody help me on VDA calculation process of Kerala . Regrds, Chumki
From India, Calcutta
Please find the attachments. I have attached both the existing minimum wages notification and the proposed one (preliminary) which is yet to be finalised but likely to be finalised once the COVID19 issues are over.

The minimum wages will comprise of two parts, ie, basic wages and variable dearness allowance or VDA. Basic wages is fixed whereas VDA will change depending upon changes in consumer price index of the place where your establishment functions.

Now see the third attachment, viz, Consumer Price Index (CPI) of different places in Kerala. CPI is published by the Department of Economics and Statistics and is available in the following link.

Consumer Price Index - New Series

Fixation of salary involves the following steps.

First take the basic wages applicable to the respective employee. Let us take or example, a network Administrator. His basic wage under the existing notification (Notification o 2011) is Rs 6070 (see Group F serial No 6)

Second calculate the VDA. The notification mentions about dearness allowance in the second para. It reads that ' in addition to the above basic wages employees shall be eligible for dearness allowance at the rate of Rs 23.40 for every point increase in CPI (series 1998-99=100) above 130 points. Now take the Consumer Price Index of different places in Kerala rom the above given website. The CPI available pertains to March 2020. There are two index numbers, series 2011-12=100 and series 1998-99=100. (The linking factor in the CPI table given is the number to be multiplied with the new series (series 2011-12=100) to convert it to old series, ie, series 1998-99=100)

Suppose the establishment is in Ernakulam ( Cochin). the CPI under series 1998-99=100 is 339. The Dearness Allowance is Rs 23.40 per point of increase in CPI over 130 points. That means, DA should be paid for 209 points (399-130) at the rate of 23.40 per point. That is, VDA is equal to Rs 4891. (Please note that the DA is variable and may change next month. In February the CPI was 341 and in February the VDA should have been Rs 4937)

Now the total salary is Basic Plus DA, Rs 6070 + 4891 or Rs 10961. This should be the minimum wages that a fresh Network Administrator should be getting. The service weightage as applicable, ie, one percent on the basic wage, should be given or every year of service. Under the new notification (preliminary issued) the increment is already mentioned in the time scale. See that the scale for Network administrator is 15570-225-16695-250-17945. That means, the basic for the fresher will be Rs 15570, second year or for an employee having one year experience, it will become Rs 15795 (ie, 15570+225), with two years of experience it will be Rs 16020 (15795+225), with three years it will be Rs 16245 (16020+225), with four years it will be Rs 16470 (16245+225), with five years it will be Rs 16695 (16470+225). After this the increment rate will become Rs 250 for subsequent five years. This is only base for fixation. You can fix any number of increment in multiples of the increment given. Again under the revised notification the DA rate is different. Obviously, when the basic has become higher, the VDA should have come down. As such the DA is equal to Rs 26 on points above 300 points. Continuing the same CPI for Ernakulam, the VDA would be:

CPI for Ernakulam is 399 and the DA is for 99 points (399 minus 300) and the amount of DA is Rs 2574 and the salary would be Rs 15570+2574 or Rs 18144

Hope this would clear your doubts.

From India, Kannur

Attached Files
File Type: pdf CPI March 2020.pdf (37.7 KB, 38 views)
File Type: pdf Computer-software- 2011.pdf (366.1 KB, 26 views)
File Type: pdf Computer-software-preliminary.pdf (259.8 KB, 24 views)

Thank you sir for explaining it so nicely . Regrds, Chumki
From India, Calcutta
Dear Sir, Pls share security minimum wages of Kasaragodu dist.
From India, Bengaluru
Please find the minimum wages notification for Security services. Calculate the wages based on the CPI applicable to Kasaragod. Please refer the discussions above referred.
From India, Kannur

Attached Files
File Type: pdf Minimum Wages- Security-2017.pdf (1.25 MB, 4 views)

PFA, the Kerala minimum wages for IT Sector.
From India, Chennai

Attached Files
File Type: pdf Kerala Minimum Wages Notification Basic IT Sector.pdf (432.2 KB, 2 views)

Mr. Madhu... well explained...Thanks for your insight.
From India, Delhi
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