There is nothing as DA as well as VDA. Some organizations have FDA (Fixed DA) and DA/VDA (Variable DA). Variable DA varies with CPI—may be monthly, quarterly, every six months, or yearly.
Except for minimum wages, there is no Act where it is mentioned that DA/VDA is a component of remuneration. In PF, Gratuity, etc., it is mentioned that the contribution or payment is to be made on Basic and DA. In the absence of DA, it will be on Basic only.
In my opinion, it is not necessary that DA/VDA should be part of the remuneration.
Even after that, if you feel the need to introduce DA/VDA, you may introduce it for Workmen category employees (covered under the ID Act - bargainable staff).
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons]
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