Plz guide me how can we calculate DA, HR Allowance, medical alloances all industries. Also please mention the forms required for each and every activities. Howeever some company or organisation calculate HRA 20% 25% , 28% and 80% (Rate of HRA 50% for metro city and 40% for others of basic salary and same is about DA, & others --plz tell us which basis they calculate this rate)
Awaiting for your prompt reply with an excell sheet of calculation formulas[/COLOR]
You must understand the basic concept of dearness allowance. It is a payment towards the rise in cost of living, which is calculated based on cost of living index.
As regards the minimum wages, the State government or the central Government makes a notification and payment is to be made.. With regard to payment at a higher level, the company can formulate its own scheme for payment of dearness allowance. It can be a fixed percentage of the basic pay, or on a sliding percentage, as per company's scheme and policy.
Please remember, once the company is paying more than the minimum wages, it can formulate its own scheme for payment of dearness allowance. Needless to say that all other factors like, region cum industry, capacity to pay etc are taken in to consideration by the company .
There is a difference of government and public sector undertaking paying DA and private or limited company paying Da.
DA(DEARNESS ALLOWANCE ) is the allowance paid to employees due to rise in Market price .
Generally DA is calculated as rise in consumer price index .And DA is connected with basic generally it is the %of basic pay.
SUPPOSE WE TAKE A BASE CPI AS 2460
CURRENT CPI IS 3460THEN RISE =1000
THEN RISE 1000/2460*100 = 40.65%
Then DA will be 40.65% of Basic.
Hope this helps,
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Topic Categories >> basic pay basic salary central government consumer price index dearness allowance limited company Location-India-Sivakasi medical allowance minimum wages public sector Complete List Of Categories
Interesting Relevant Discussions