Kenneth Dias

To which category of Employees is mandatory to include D.A and VDA in the Salary Structure ?
From India, Nuvem
Ceo-usd Hr Solutions
Kenneth Dias
Hr Consultant & Advisor


There is nothing as DA as well as VDA. Some organizations have FDA ( Fixed DA ) and DA/VDA (Variable DA). Variable DA vary with CPI - may be monthly, quarterly, 6 monthly or yearly.

Except minimum wages there is no Act where it is mentioned that DA /VDA as a component of remuneration. In PF, Gratuity etc. it is mentioned that the contribution or payment to be made on Basic and DA. In absence of DA it will be on Basic only.

To my opinion it is not necessary that DA/VDA should be the part of the remuneration.

Even after that if you feel to introduce DA/VDA, you may introduce for Workmen category employees ( Covered under ID Act - bargainable staff )

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