The appropriate government (Central Government & State Government) notifies the minimum wages twice during the fiscal year, remaining enforced from April to September and October to March, subject to changes in the price index. Similarly, the government releases the Consumer Price Index (CPI) for each quarter. Each point of variation in CPI has a monetary value corresponding to the rate escalation due to inflation. The CPI point varies from one place to another; thus, the rate of variation of that area is applicable to the adjacent area. The change is added to Variable Dearness Allowance (VDA) for the calculation of wages for that quarter but is not applicable to establishments that do not have a VDA component. Such establishments shall follow the minimum wages.
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