Dearness Allowance may be broadly classified into two category - Fixed DA (FDA) and Variable DA (VDA). VDA is followed by the majority organizations in India which is reviewed based on Consumer Price Index (CPI) periodically. Review of VDA period varies from organizations to organizations which may be monthly, qtrly, half yearly or yearly. There are different methods of neutralization of CPI index increase or decrease - % neutralization, per point CPI multiplied by certain money value neutralization, Pay scale slabs and VDA neutralization ( % or per point money value) etc. etc.
In India there are several VDA schemes in Govt sector as well as Private sectors. Consideration of Base years are also varying in different organizations.
DA & VDA usually the same thing - DA may be FDA or VDA but VDA is VDA. IDA is probably industrial DA if I am not wrong. CPI index published for different category of people for their different basket to determine the price index. There is one index for Industrial workers and the IDA which is again basically another VDA is reviewed based on Industrial Workers Index.
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