Dearness Allowance Calculation For Leather Tanneries

Hello Seniors, I wanted to know whether Leather Tanneries should follow Variable Dearness Allowance (VDA) based on lastest available Consumer Price Index (CPI) or they can consider Average CPI to calculate average Dearness Allowance. The minimum wages notification of Leather Tannerie is not clear about whether VDA should be taken or DA should be taken. Where as for other industries like Leather Footwear it is clear that they have to consider VDA based on available CPI.

Dear friend
PFA copy of TN Govt's Gazette Notification on MW for Tanneries and Leather Goods Manufactory which is self-explanatory. As per the GO, you will have to pay Basic and DA @ 3 paise per point over and above 2174 points on All India Consumer Price Index on 1960 series per month. For example Nov '14 AICPI works out to 1193 points (1982 series) x 5.05 (being the linking factor for 1960 series) - 2174 x 3 p = Rs115.50 per day will have to be paid along with Basic wages as fixed in the GO for the different categories of workmen. In case if you need more details / clarification, pl contact us.
Regards
N Nataraajhan, Sakthi Management Services (HP : + 91 94835 17402 ; e-mail : [Login to view])

Thanks Mr. Natarajan. I am also having the same thought. My doubt is that in some industry minimum wages notification it is clearly mentioned that VDA can be calculated on the basis of average CPI (Timber industry) and some industries it is clearly mentioned that VDA have to be calculated with available CPI every month (leather footwear). But for this tannery industry, calculation was not clearly stated whether to follow average CPI or available CPI?? So doubt raised!!

Dear friend
In the GO, since daily rates of Basic is mentioned - DA calculation has also been given on daily basis. This has been the practice wherever daily rates are prescribed - e.g., Civil Construction Industry. But payment could be made on monthly basis.
Regards
N Nataraajhan, Sakthi Management Services (HP : + 91 94835 17402 ; e-mail : [Login to view])

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