1
DA/VDA Calculations for Minimum Wages
There are DA/VDA calculations for minimum wages as well as through different schemes in both the public and private sectors. In all methods, the Consumer Price Index (CPI) is a common factor, but the neutralization processes differ. In some cases, it is percentage-wise, while in others, it is per point neutralization, comparing with the ups and downs of the index.
Review Periods and Base Year
There are index months/quarters, etc., as well as payable months/quarters, etc. It is basically the time of review—monthly, quarterly, half-yearly, or yearly. There is also the base year, which may be 1960 = 100, 1982 = 100, 2000 = 100, etc. The purpose of changing the base year is that the consumption basket changes with the passing years. There is also a conversion factor from one base year to another.
Depending on the DA/VDA scheme, you have to understand the overall concept properly.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
Acknowledge(0)
Amend(0)
There are DA/VDA calculations for minimum wages as well as through different schemes in both the public and private sectors. In all methods, the Consumer Price Index (CPI) is a common factor, but the neutralization processes differ. In some cases, it is percentage-wise, while in others, it is per point neutralization, comparing with the ups and downs of the index.
Review Periods and Base Year
There are index months/quarters, etc., as well as payable months/quarters, etc. It is basically the time of review—monthly, quarterly, half-yearly, or yearly. There is also the base year, which may be 1960 = 100, 1982 = 100, 2000 = 100, etc. The purpose of changing the base year is that the consumption basket changes with the passing years. There is also a conversion factor from one base year to another.
Depending on the DA/VDA scheme, you have to understand the overall concept properly.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Safety Index calculation work sheet.pdf
Dearness Allowance.xls