What Is The Difference Between VDA And Special Allowance

Dear All,
What is the basic difference between VDA (Variable Dearness Allowance) and Special Allowance?
Rahul Vaidya

Hello,
VDA or variable Dearness Allowanve is a payment (part of the total wage) that VARIES with some Consumer Price Index (whatever the series) compiled by the Government of India (if I am right, by National Sample Survey).
Special Allowance is in the nature of a Dearness Allowance only but is a term used in Minimum Wages Act. This Special Allowance is statutorily a part
of Minimum Wage under the act and is linked to a particular series also stated unser the said act.
Because the different series of Cost of Living/Consumer Price Index and different linkages these may vary at different rate but in essence these are identical being in the nature of a "payment to neutralise the rising costs".
Without going into techinacalities of the matter, I suppose this explanation would be adequate!
Regards
samvedan
November 20, 2011-------------------

agreed with samvedan and in addittion to it VDa is calculated on basis of India wide average consumer price index.
this iis done on every jan and july
for more details go through labour.nic.in

As far as knowledge is concern special allowance is same as other allowance eg HRA,Cony.,Educational Cess, Medical Incentive & various other allowances, DA/VDA is depend upon the variation of consumer index and defined by the state govt. time to time under the minimum wages act.
thanks & regards,
From,
Sumit Kumar Saxena

The difference between DA & VDA is explained here.
https://www.citehr.com/33995-differe...a-ida-vda.html
Spl. allowance is the residual amount of your CTC after adjusting Basic, DA, HRA and other tax saving components. I don't think Min wages Act prescribe about spl. allowance.
Pon

VDA is the part of gross wage where as SPL allowance is excluded the total wage for ex..washing allowance, medica allowance etc
Deepak

Hello,
Kindly check out the provisions ofthe Minimum Wages Act.
What I referred to as "Special Allowance" is a sanctified and variable component of Statutory Minimum Wage.
Further, CTC has NO statutory recognition/sanctification.
It is a tool to budgetting and controlling "Employee Costs". It is certainly NOT the residual component of wage, to be somehow called "Special Allowance" after adjusting Basic, HRA and other tax saving components.
I am afraid, we differ on this point. I thought I should provide a clarification for general benefit of the members.
Regards
samvedan
November 24, 2011------------------

Yes, I referred the cited Act. The term spl. allowance is used for DA/VDA, I construe. The Act was formulated in 1948 and the term is not yet changed as DA by our policy makers. CTC is not legal but practiced worldwide and accepted. In CTC regime, the spl. allowance definition is what I said above. I think, most of the members here are under the CTC regime, that's why I meant.
Pon

Dear Mr. Pon.
While fixing the wage rate for Security Guards and some technical skilled workmen, the Special allowance is considered by the Government in Minimum Wages Act.
In Factories area the Minimum Wages is comprised with Basic Wages and Special Allowances for the workmen. But in Construction industries the Minimum Wages is bifurcated into Basic wages and VDA (as per CPI).

Dear All,
Can We Treat Other Allowances as Special Allowances?
Rajiv.
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