kindly explain the meaning and purpose of VDA
CA. Dashrath Maheshwari
(TaXpert)
(15103 Points)
Replied 19 November 2008
Variable Dearness Allowance (VDA)
It was recommended in the Labour Ministers' Conference held in 1988, to evolve
a mechanism to protect wages against inflation by linking it to rise in the
Consumer Price Index. The Variable Dearness Allowance came into being in the
year 1991. The allowance is revised twice a year, once on 1st April and then
on 1st October. In the State Sphere, 26 States/Union Territories have
provisions for Variable Dearness Allowance, at present.
CAclubindia
