Our Company is based at Mumbai. We do not have Dearness Allowance in our Compensation structure but we have Special Allowance salary components. Are Dearness Allowance and Special Allowance same for Gujarat state? Do we need to calculate the PF, Gratuity on the basis of Basic salary % or Basic+Special Allowance %?
Both are not the same. Need not calculate EPF/Gratuity on Special Allowances.
If you are from HR ,it is a task for you to ask your Management to consider DA instead of SA or keeping SA also. Try out in the interests of the employees at large.
If Minimum Wages Act is being applied, then Dearness Allowance and Special Allowance means one and same thing. If not , they are two different components in the salary structure.
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