Variable Dearness Allowance [Thread 39887]

Dear Friends,
Can any one help me on Variable Dearness Allowance.
What Is VDA
How often it will Change
How we have to caliculate
Regards.
S.V.Jayapal Reddy[/b]

Dear jaipal,
VDA means Variable Dearness allowance.
I presumed that your employer paying FDA and VDA in salary. The points fixed in Long Term Settlement.
The VDA revision done ever after six months based on Min. wages revision. But you refer your LTS and work accordingly.
regs,
Bhushan

Dear S.V,
I would only like to add to what Bhusan had said is that the VDA is changed as per the Government Notification which comes out periodically based on the increase/decrease of Consumer Price Index(CPI) which must be refered to.
Regards,
SC

Hai Jaypal Reddy,
This is Sudheer
I think U spoke to me on this topic.
This is basically Known Variable dearness allowance linked with consumer price index which is published by Govt of India.Normally we enter into an agreement with union 1960 or 1980 base and we decide per piont this much amt etc., to pay quarterly,halfyearly. we obtain these points from our FAPCCI
caluculate the same basing on the linking factor and find out any increase/decrease and pay accordingly.
s.sudheer Reddy

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Regards
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Hello All,
I need your inputs/advise/comments on the following concern:
My organisation has been providing with Basic + FDA to our employees.
A request for a change to basic + VDA has been received.
I need to know the following :
How is VDA calculated in order to make a comparison between FDA & VDA.
awaiting your responses

Variable DA is variable according to changes in the consumer price index. The base index will depend upon the industry and the settlement arrived at by the respective state's minimum wages committee. VDA will be calculated at the rate of every increase in the consumer price index over the base so fixed. Therefore, a reference to the CPI is required to pay VDA on a monthly basis. Normally, VDA is a component of minimum wage fixation. VDA of all the employees in a particular industry (say, plywood sector, coir sector, leather sector) will be one and the same irrespective of basis salary.
Fixed DA, on the other hand, is a fixed percentage of the basic salary. Therefore, higher the basic salary the higher will be the FDA. FDA need not necessarily be fixed for a long time. It will also be revised according to changes in the CPI but not frequently. The amount of FDA will not be uniform for all the employees but will depend upon the basic salary.
Regards,
Madhu.T.K

Thank you very much..
can you explain with an example..
for Eg:
VDA for skilled worker is Rs 8 per day.
The index is (i guess) 2001-100
how should i interpret and calculate ?
is there some more information reqd?

Collect the present CPI of your area. Let it be 130. Then for every increase in the CPI over and above 100 (base) you have to pay VDA @ Rs 8 per day. That is, increase in CPI is 30 ( 130- 100) and the VDA will be Rs 240 multiplied by 26 ( for daily rated workers) or 30 (for monthly rated workers)
Regards,
Madhu.T.K

hi
every six months VDA will change, the change is based on consumer price index points
regards
krishna