Can anyone please share the VDA Notification copy w.e.f. 01.10.2013 and also please tell how to calculate the vda point rate
From India, Hyderabad
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5From India, Hyderabad
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Understanding Industrial DA Notification and Calculation
The Industrial DA notification can be accessed from the official website of the Department of Public Enterprises under the Ministry for Heavy Industries. I shall provide a brief on the calculation and related details.
Considering the living cost and all, wage revision is conducted once every five or ten years. However, inflation rises day by day, and subsequently, the value of money decreases. To compensate for this, we have to wait until the next wage revision, which is not practical. That is why the DA is introduced.
The devaluation of money can be assessed through the Wholesale Price Index and the All India Consumer Price Index (AICPI). The difference between these two is that the price variation of all commodities is considered for the Wholesale Price Index.
Differences and Limitations of AICPI
1. There is a particular consumer, viz., the Industrial Worker.
2. Some specified goods and services are defined, called the "basket of goods."
3. Along with the price variation of commodities, their consumable quantity is also considered.
4. Across India, 78 centers are selected to take an average.
Based on the All India Consumer Price, Industrial DA is paid; it varies quarterly, commencing from January, April, July, and October. For January, the AICPI will be the average of the previous September, October, and November. Similarly, for April, it will be December, January, and February; for July, it will be March, April, and May; and for October, it will be June, July, and August, respectively.
When the money devaluation is fully compensated, it is called full DA neutralization. The formula for full DA neutralization is: (Total points - Base points) / Base points (in percentage). The AICPI was introduced in India in 1960 and revised in 1982 and 2001. AICPI of 2001 multiplied by 4.63 gives AICPI of 1982, and AICPI of 1982 multiplied by 4.93 gives AICPI of 1960. For DA calculation, AICPI of 1960 is accepted as the base.
Currently, in India, two main wage settlement terms exist: Wage Settlements of 1.1.1997 and 1.1.2007. The base point for 1.1.1997 is 1708, and for 1.1.2007, it is 2884.
Example Calculation of AICPI for July '10
This is equivalent to the average of the previous March, April, and May, recorded as 170, 170, and 172 (Base year 2001). Multiply by 4.63 and round, we get 787, 787, and 796 (Base year 1982). Multiply by 4.93 and round, we get 3880, 3880, and 3924 (Base year 1960). Find the average of these three and round, we get 3895.
DA Calculation for Different Scales
- DA for 1.1.97 scale: Total points - 3895, Base points - 1708, Total - Base = 2187. Percentage is 2187/1708 x 100 = 128.0 (Correct to one decimal).
- DA for 1.1.2007 scale: Total points - 3895, Base points - 2884, Total - Base = 1011. Percentage is 1011/2884 x 100 = 35.1 (Correct to one decimal).
Regards,
ABBAS.P.S
ITI Limited, PALAKKAD - 678 623,
KERALA, INDIA.
[Phone Number Removed For Privacy Reasons]
From India, Bangalore
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The Industrial DA notification can be accessed from the official website of the Department of Public Enterprises under the Ministry for Heavy Industries. I shall provide a brief on the calculation and related details.
Considering the living cost and all, wage revision is conducted once every five or ten years. However, inflation rises day by day, and subsequently, the value of money decreases. To compensate for this, we have to wait until the next wage revision, which is not practical. That is why the DA is introduced.
The devaluation of money can be assessed through the Wholesale Price Index and the All India Consumer Price Index (AICPI). The difference between these two is that the price variation of all commodities is considered for the Wholesale Price Index.
Differences and Limitations of AICPI
1. There is a particular consumer, viz., the Industrial Worker.
2. Some specified goods and services are defined, called the "basket of goods."
3. Along with the price variation of commodities, their consumable quantity is also considered.
4. Across India, 78 centers are selected to take an average.
Based on the All India Consumer Price, Industrial DA is paid; it varies quarterly, commencing from January, April, July, and October. For January, the AICPI will be the average of the previous September, October, and November. Similarly, for April, it will be December, January, and February; for July, it will be March, April, and May; and for October, it will be June, July, and August, respectively.
When the money devaluation is fully compensated, it is called full DA neutralization. The formula for full DA neutralization is: (Total points - Base points) / Base points (in percentage). The AICPI was introduced in India in 1960 and revised in 1982 and 2001. AICPI of 2001 multiplied by 4.63 gives AICPI of 1982, and AICPI of 1982 multiplied by 4.93 gives AICPI of 1960. For DA calculation, AICPI of 1960 is accepted as the base.
Currently, in India, two main wage settlement terms exist: Wage Settlements of 1.1.1997 and 1.1.2007. The base point for 1.1.1997 is 1708, and for 1.1.2007, it is 2884.
Example Calculation of AICPI for July '10
This is equivalent to the average of the previous March, April, and May, recorded as 170, 170, and 172 (Base year 2001). Multiply by 4.63 and round, we get 787, 787, and 796 (Base year 1982). Multiply by 4.93 and round, we get 3880, 3880, and 3924 (Base year 1960). Find the average of these three and round, we get 3895.
DA Calculation for Different Scales
- DA for 1.1.97 scale: Total points - 3895, Base points - 1708, Total - Base = 2187. Percentage is 2187/1708 x 100 = 128.0 (Correct to one decimal).
- DA for 1.1.2007 scale: Total points - 3895, Base points - 2884, Total - Base = 1011. Percentage is 1011/2884 x 100 = 35.1 (Correct to one decimal).
Regards,
ABBAS.P.S
ITI Limited, PALAKKAD - 678 623,
KERALA, INDIA.
[Phone Number Removed For Privacy Reasons]
From India, Bangalore
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