Understanding DA and VDA: What's the Difference and Why Is VDA in UP's Minimum Wages?

Please guide me on the difference between DA and VDA. I have never heard of VDA in Delhi but I found VDA mentioned in the minimum wages notification of UP.

Thanks and Regards,
Vikas Kumar

Dear Vikas,

DA may be fixed or variable, but generally, fixed DA terms are used in big engineering industrial establishments.

Thank you.
J. S. Malik

Dear All,

I want to share my knowledge about the types of Dearness Allowance (DA) that exist in India with my fraternity.

1. Variable Dearness Allowance (VDA): Linked to the cost of living index every three months, it is calculated by the Simla Labour Bureau and followed by many state governments to convert VDA or Special Allowance for various industries covered under the Minimum Wages Act.

2. Dearness Allowance (DA): Similar to Variable Dearness Allowance, it is often pronounced as DA by people.

3. Central Dearness Allowance: Applicable to the central government employees, this allowance is higher than the Industrial Dearness Allowance based on the rate of increase per point.

4. Industrial Dearness Allowance (IDA): Applicable to Central Public Sector Enterprises and undertakings with separate salary scales, IDA rates are lower than Central Dearness Allowance rates.

5. Fixed Dearness Allowance: Agreed upon ad-hoc allowance that is subsequently merged into basic pay.

Regards,
Sawant