Dear Amal Krishnan, I am not able to understand what you mean by "money back system" and why you link it to V.D.A. The abbreviation "V.D.A" generally means "variable dearness allowance." In the system of wage and salary administration in public and private employments, it refers to the method of computing and paying dearness allowance to employees in tune with the periodical variation in the general price level prevailing in the economy.
I do hope that you understand the actual meaning of dearness allowance in the wage/salary structure of employees and hence leave its explanation to yourself. In any economy, prices of goods and services do not remain static; they change, i.e., rise or fall depending upon market conditions. Self-employed people are capable of making adjustments in their incomes accordingly. However, salaried people cannot withstand steep rises in prices as it would adversely affect their real income.
To offset this factor, the element of variability is introduced by linking their dearness allowance to any Cost of Living Index, and then it is called variable dearness allowance or V.D.A for short.
From India, Salem
Acknowledge(4)
Amend(0)
6108I do hope that you understand the actual meaning of dearness allowance in the wage/salary structure of employees and hence leave its explanation to yourself. In any economy, prices of goods and services do not remain static; they change, i.e., rise or fall depending upon market conditions. Self-employed people are capable of making adjustments in their incomes accordingly. However, salaried people cannot withstand steep rises in prices as it would adversely affect their real income.
To offset this factor, the element of variability is introduced by linking their dearness allowance to any Cost of Living Index, and then it is called variable dearness allowance or V.D.A for short.
From India, Salem
Acknowledge(4)Amend(0)
Hi, sir,
In October 2016, the Delhi state government increased the Minimum Wage (MW) by 37%. This decision was challenged in the Delhi High Court by the employer association and is currently pending judgment. Meanwhile, the state government has increased the Variable Dearness Allowance (VDA) two times. I would like to understand if the VDA is linked in any way to the MW set by the state government in October 2016. Our workers are requesting an increase in VDA. In simple terms, are we obligated to pay VDA until the final outcome of the writ petition or not? Kindly advise.
From India, Hyderabad
Acknowledge(0)Amend(0)
In October 2016, the Delhi state government increased the Minimum Wage (MW) by 37%. This decision was challenged in the Delhi High Court by the employer association and is currently pending judgment. Meanwhile, the state government has increased the Variable Dearness Allowance (VDA) two times. I would like to understand if the VDA is linked in any way to the MW set by the state government in October 2016. Our workers are requesting an increase in VDA. In simple terms, are we obligated to pay VDA until the final outcome of the writ petition or not? Kindly advise.
From India, Hyderabad
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.
Minimum Wage of UP & UK.pdf