Dear Citehr members,
I understood several companies are including DA as component of salary breakup for workers and they are not including DA on their staffs salary breakup. Why is this difference between workers and staffs ? Is there any legal implications ? Is there any advantage for staff, workers and management ?
Please reply.
2nd December 2008 From India, Bangalore

Industrial Relations And Labour Laws
Manager - Hr
+2 Others

Staff(all from technician to jr.engin,engineer,officer,sr.officer,executive,man ager to the top level including MD;as employer too) and CEO..) the is those are on "payroll" and workers(unskilled, semiskilled and skilled) are mostly called those are on contract bases.
8th December 2008 From India, Ahmadabad
Legally there is no difference between workers and staff. In fact you cannot see the word 'staff' in any legal document or Act. One who works for the organisation for a remuneration called 'wages' or 'salary' is a worker or employee. There are Acts which distinguish workmen 'covered' and 'not covered' and employees coming under the Act and who purely do supervisory and administrative jobs.

But in practice and conventionally, those who work for lesser amount of remuneration are treated as workers and who do mainly administrative work and are involved in supervising of job are treated as 'staff' members. A more advanced version of staff emerged with the IT boom is 'professionals'.

These are relative and will change from establishment to establishment. A Foreman, who is a staff as per above description, of a small scale organisation will be treated only as a workmen when he takes up employment in a large scale organisation. It changes from situations to situations also. It is a human nature that when the management takes disciplinary action against a manager, he inclines himself to workmen. When the economy started declining and IT sector started facing problems, much of the 'professionals' have now started thinking of any possibility of themselves been treated as 'workmen' under the Industrial Disputes Act or other Acts!

Regarding Dearness Allowance, since the DA is expected to reflect cost of living, there should not be any difference in treatment. Many companies pay DA to the workmen only because DA is a mandatory component of Minimum Wages applicable. Since supervisory and managerial staff members do not come within the purview of minimum wages, they are paid an all inclusive salary.


9th December 2008 From India, Kannur
Dear madhu as you discussed whether D.A is payable to contract employees who works under a contractor and under esi & pf deductions
18th December 2008 From India, Hyderabad
DA is essentially a part of salary and the contract employees who work under a contractor should also be paid DA according to the cost of living index. It is the responsibility of the principal employer to ensure that the contractor pays DA as per Minimum Wages applicable.
19th December 2008 From India, Kannur
is it necessary to increase or pay DA if we increase the net salary of the workers... Can anyone please help me on this???
15th January 2010 From India, Mumbai
DA increase will take place automatically with increase in cost of living. Therefore, no further revision is required to be made in DA when ever there takes place a salary revision. This is the case of VARIABLE DA. In the case of Fixed DA which is granted as a percentage of Basic Salary, the DA increases when ever the basic salary increases.

It is also possible to revise the salary as an interim measure to meet the increasing cost of living by increasing the DA point. That is, if the present VDA is Rs 2.50 per consumer price index above 400 points (under the old series) it can be revised as Rs 2.85/ Rs 3/ Rs 3.5 etc sothat every point of CPI over 400 will attract VDA at the rate of Rs 2.85/ 3/ 3.5 etc.

Similarly, if the Fixed DA is 85% of the Basic, there can be a revision of DA from 85% to 90% or 93% to revise the salary. These depend upon the management policy. But as per statute an establishment is suppose to follow the system of VDA which varies as per cost of living index.


16th January 2010 From India, Kannur
Please login to participate in this discussion. Discuss problems, ideas, solutions with industry peers. Stay up-to-date with what's new and what's happening in the industry. Create Account (No Registration Charges)

About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network