New HR Executive Needs Help Understanding and Calculating VDA for Employee Wages

I am Shanker, newly joined in a company as an HR Executive. The issue at hand is that VDA points have changed from October 2013 to April 2014. Therefore, my request is for an explanation on VDA. Could you also assist me in understanding how to calculate it and provide the required format? This is crucial as we need to include the VDA amount in our employees' April month wages by May 5, 2014.

With best regards,
Shanker Nadimidoddy
[Phone Number Removed For Privacy Reasons]

Understanding VDA Points Change

VDA points have changed from October 2013 to April 2014. Here's an explanation of how VDA is calculated:

VDA Calculation Method

VDA is calculated based on the Consumer Price Index points, which are issued by the Statistics Department of the Government based on the price rise. We cannot calculate it ourselves but need to follow the points issued by them.

Example of VDA Calculation

If the Basic is Rs. 3977.00, the VDA is calculated as follows:
VDA = (difference in points (5780-3944) x 1836 paise x 0.03 x days (360)) = 1652.40.

Books regarding this topic are already available in the market.

Regards,

Dear Shanker,

From your submission, it appears that VDA of your organization is reviewed every 6 months. This frequency is not consistent across all organizations; it varies. The review frequency may range from monthly, quarterly, every 6 months, to yearly. It is also influenced by the base year and the rate of monetary neutralization (Formula).

I recommend studying the VDA scheme of your organization and taking appropriate action based on your findings.

Thanks & Regards,
S K Bandyopadhyay (WB, HOWRAH)
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