Confused About Dearness Allowance for Leather Tanneries? Let's Discuss CPI Options

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

Minimum Wages Notification for Tanneries and Leather Goods Manufacturing

Please find attached a copy of the TN Govt's Gazette Notification on Minimum Wages for Tanneries and Leather Goods Manufacturing, which is self-explanatory. According to the Government Order (GO), you will have to pay Basic and Dearness Allowance (DA) at a rate of 3 paise per point over and above 2174 points on the All India Consumer Price Index (AICPI) on the 1960 series per month.

For example, in November '14, the AICPI worked out to 1193 points (1982 series) x 5.05 (the linking factor for the 1960 series) - 2174 x 3 paise = Rs 115.50 per day that will need to be paid along with the Basic wages as fixed in the GO for the various categories of workers. If you require further details or clarification, please do not hesitate to contact us.

Regards,
N. Nataraajhan
Sakthi Management Services
Mobile: [Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]

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

Regards