Kindly tell me about variable DA calculations in resepct of Pvt Ltd Co. in Calicut District. Also, the point converting formula.
From India, Pune
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1From India, Pune
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Variable DA is based on the consumer price index. Under the Minimum Wages Act and rules framed thereunder, a base year pertaining to the industry will be mentioned. For example, for the Plywood Industry, a particular base index; for the Engineering Industry, another base, and so on. Similarly, the DA rate will also be specified. To calculate the VDA, the CPI and the points above the base will be multiplied by the DA rate per day or month, as the case may be. The base index may be 100, 200, or 250, for which you have to refer to the minimum wages of the respective industry. It is irrelevant whether the company is constituted as a Private Ltd, Public Ltd, or Partnership. What is relevant is the industry to which the firm belongs. If the base is 100 and the present CPI (I don't know the present indices) is 130, and if the rate of DA is Rs 5 per day, then the VDA will be Rs 150 per day (30, the points by which the CPI exceeded the base index, multiplied by Rs 5).
Please check the DA rate applicable to your firm (sector) and find the base over which DA is to be calculated from the District Labour Office. Obtain the present Cost of Living Index from the Bureau of Economics and Statistics to calculate VDA.
Since VDA is based on a CPI and on a rate applicable to all firms in a particular industry, such as plywood, it will be uniform throughout the industry and irrespective of employee category.
Regards,
Madhu.T.K
From India, Kannur
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Please check the DA rate applicable to your firm (sector) and find the base over which DA is to be calculated from the District Labour Office. Obtain the present Cost of Living Index from the Bureau of Economics and Statistics to calculate VDA.
Since VDA is based on a CPI and on a rate applicable to all firms in a particular industry, such as plywood, it will be uniform throughout the industry and irrespective of employee category.
Regards,
Madhu.T.K
From India, Kannur
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TN Minimum Wages Act Revised DA 2014-15.pdf