Draft Notification on Contract Labour Wages in AP: What Are Your Thoughts on the Proposed Changes?

Draft Notification Review

Please go through the draft notification for your value additions.

Regards,
Kalijanni

Thank you for the information, and please help me with how to calculate DA. Previously, Visakhapatnam Steel Plant followed the State Government Order. Now, they are following the Central Government Order. Please help me to calculate DA. Pardon me if there are any mistakes in my English.

Regards,
Mssv Prasad

This is only an ABSTRACT, not a G.O. It will be coming into force shortly.

Regards,
PBS KUMAR

The rates seem to be high compared to other states. Also noted is that they have fixed minimum wages even for managers, not just workmen.

Good information. It would be useful if anybody could explain how to calculate VDA. Is the minimum wage notified inclusive of VDA as of the current date, or is any additional VDA amount payable?

Best Regards,
K Ranga Raju

Dear Ranga Raju,

You asked about how to calculate VDA as per the Draft Notification:

The minimum basic rates of wages fixed are linked to the Consumer Price Index Numbers for the industrial workers at 835 points (Base Year 1982=100 series). The Commissioner of Labour shall notify the Consumer Price Index numbers every six months, i.e., 1st April and 1st October of the calendar year. For this purpose, the average rise in the State Industrial Workers Consumer Price Index numbers for the half-year ending December and June respectively shall be taken into account. For every rise of one point over and above (835) points, any increase of Rs.6.55 (Rupees six and Paise Fifty-Five only) per point per month shall be paid as Dearness Allowance to all the categories covered in the Schedule.

As per the period of CPI noticed in this period (i.e., 1.4.211 to 30.09.2011), 835 is linked also to 835. Hence, the balance VDA points are 835-835 = 0. Therefore, there is no need to pay any VDA for this period (i.e., 1.4.211 to 30.09.2011).

Example: For the next period from 1st Oct 2011 to 31st March 2011, if the VDA points announced are approximately 850 (this is assuming only). Hence, VDA for that period is 850-835 = 15 points. We can pay an amount of Rs.6.55 for each point, i.e., 6.55*15 = Rs.98.25 will be added to basic wages.

Thanks,
Kalijanni