Dear All, Can anybody explain what is the difference for Industrial VDA and Minimum Wages VDA. Why base year for Industrial VDA and why not for Minimum Wages VDA. Can anybody explain. Regards HR
1
Basically there is no difference. Base year is basically for publishing index. Base year is changed from time to time based on price in the the market and change of consumption pattern. VDA is nothing but the neutralization of index in terms of money. It may be % wise or per point neutralization. There are other methods of neutralization of index in different organization where Union by bargaining settled the remuneration. Minimum wages also have a base year for publishing index and neutralize it by money value
S K Bandyopadhyay ( WB, Howrah)
www.usdhrs.in
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah)
www.usdhrs.in
From India, New Delhi
Sir,
but industrial vda will be calculated on cpi points and is this same equals to the minimum wages VDA notified by govt for every six months. cpi points will be declared every month and average of 3 months will be taken to calculated industrial vda. can you please elaborate and explain.
Regards
HR
but industrial vda will be calculated on cpi points and is this same equals to the minimum wages VDA notified by govt for every six months. cpi points will be declared every month and average of 3 months will be taken to calculated industrial vda. can you please elaborate and explain.
Regards
HR
VDA may be reviewed monthly basis, quarterly basis, 6 monthly basis or yearly basis. CPI is the Consumer price index published for every month. Now industrial VDA is calculating on the basis of qtrly average difference and neutralized by certain money value for increase or decrease whereas minimum wages VDA is calculated every 6 monthly average difference and neutralizing by certain money value also varies from State to State. I have personal knowledge about many organizations where VDA is revised 6 monthly or yearly with double linkage - Related to Basic slab as well as CPI index. There are organizations also who are reviewing VDA % basis - 10 points increase in CPI against any specific Base year , VDA increase will be 5% on existing (reviewed qtrly/6 monthly/yearly) and so on. Earlier I have noticed even monthly VDA review - Bombay Chamber of Commerce, Bengal Chamber of commerce etc.
S K Bandyopadhyay ( WB, Howrah)
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah)
From India, New Delhi
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