hi please share how to calculate VDA Points on which basis we calculate
From India, Hyderabad
Hr Manager
Ceo-usd Hr Solutions
Ram K Navaratna
Hr Consultancy

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There is nothing call as VDA Points. VDA - Variable Dearness Allowance is a money value which is reviewed based on the policy of the organizations/ union negotiations etc. It may be monthly, quarterly, 6 monthly or yearly review process. There is Consumer Price Index ( CPI) against certain Base year ( 1960 = 100, 1982 = 100 etc.) . CPI again published for all India, State wise,Important locations of the Country etc.

One should know the VDA scheme what is applicable to the specific organization. It is varying randomly. Different company has different base year, different review timing ( monthly, qtrly etc.), different neutralization process etc.etc.

After obtaining the index value it has to be neutralised to money value by multiplying any factor, % wise increase, slab basis etc.etc.

Usual practice in India is quarterly review and neutralization to money value by a factor. There is index quarter and payable quarter.

My suggestion is try to understand all above in details and then start the job, otherwise it will be improper approach.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi
Suresh Rathi

VDA forms part of Min Wages and is calculated based on Price Index .
States publish gazette on revision of Min Wages and give VDA applicable at time
For Pvt Organizations there is no law to have VDA as part of Salary--though some Co's do give DA as part of salary.

Col.Suresh Rathi

From India, Delhi
Dear Sir, I need Telangana VDA from 1.4.2022 to 30.9.2022.
From India, Hyderabad

If you can contact Labour Bureau, Ministry of Labour & Employment, Govt of India (even you can write to them, they will send the information), you will get CPI (Consumer Price Index nos for various States as well as applicable Linking factor to arrive at VDA.

Address of Labour Bureau, Shimla is given below:-

The Cleremont Building,
Chaura Maidan Rd,
Chaura Maidan,
Himachal Pradesh 171004

Another way is to approach District Industries Centre of your District.
OR yoou can approach Economics & Statistics Deptt, State Government for
getting the information.

From India, Aizawl
Ram K Navaratna

Dear Bandyopadhyaya

Good discussion and learnings on VDA its concept calculation particularly for the beginners in the profession and where union LTS exists it is still more important.

1. Normally either State or Central Minimum wages are declared Yearly or Half Yearly based on CPI Shimla series. Depending on the notification VDA or CLA to be reckoned

2. Where LTS are in existence after certain points there will be neutralization and over and above of the points certain figures of rupees will be fixed and are be calculated. Normally this is every quarter in most of the LTS.

3. In many sates minimum wage notifications over and above of certain Index or CPI, certain paise per increased points are taken and arrived to the particular years of DA or Cost of Living Allowance.

Following is the link in respect of Minimum Wages of Karnataka 2022-23 where there is an increase of Rs. 510 for the year 2022-23 shows based on the increase and calculation. To understand View the video in YouTube link of which is as under.

Karnataka Minimum wage 2022-23. Be aware of enhancement (Rise)


Ram K Navaratna
HR Resonance

From India, Bangalore

Dear Mr. Ram K Navaratna,

As per the original post it was not asked about VDA under Minimum Wages. Whatever I have explained to my earlier post that is based on VDA applicable to some Organizations by Union(s) bargaining / age old practice, Bank/Govt employees etc. VDA revision.

I fully agree there is VDA linked to minimum wages and most of the States review it six monthly. I appreciate all post who have highlighted about VDA linked to Minimum wages.

I have started my career in 1976 and in those days I had noticed that different chamber of commerce (Bombay, Bengal, Madras etc. ) were declaring VDA which was reviewed in monthly basis and payable months were one month gap from index month. The formula was 1st hundered of Basic it was x%, 2nd 100 of the Basic it was 0.5x% and 3rd 100 and on wards of Basic it was 0.25x% . With increase of index value there was change of the value of x by different formula which I cannot remember at this moment. Even today VDA calculation method is different in Bank, Central GOVT, State Govts etc. I have no idea but probably some organizations in India are paying VDA may review it 6 monthly as per Minimum Wages VDA.

I once again appreciate the learned members for their contribution for VDA under Minimum Wages.

Warm Regards,

S K Bandyopadhyay ( HOWRAH, WB)
CEO- USD HR Solutions
+91 98310 81531

USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi

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