Understanding VDA Points in Salary: How Does Your HR Calculate Them?

To calculate VDA points in salary, you typically need to follow a specific formula or method provided by your organization. VDA points, which stands for Variable Dearness Allowance points, are often linked to the cost of living index and are used to adjust salaries based on inflation or changes in the cost of living.

Usually, HR departments or payroll specialists are responsible for calculating VDA points and incorporating them into employees' salaries. If you are unsure about how VDA points are calculated in your organization, it's best to reach out to your HR department for guidance. They can provide you with the necessary information and explain the process in detail.

Your question is not clear. VDA is fixed after considering the CPI (Consumer Price Index), and each scheduled industry will have a separate VDA for each point above a certain CPI threshold. It will be mentioned in the notification itself. When posting a question, it is advisable to make it clear.

Understanding VDA and Its Calculation

VDA is variable pay linked to the consumer price index. It is reviewed quarterly, half-yearly, yearly, or monthly, varying from organization to organization. Even in minimum wages, the VDA usually changes half-yearly. There are different base years for calculating VDA. Some money value is attached to change the VDA money value figure. It may be percentage-wise, slab-wise, per point increase value, etc., depending on VDA policy, which varies from organization to organization.

Regards, S K Bandyopadhyay