In our organisation, we follow the policy that DA is applicable only till Assistant Managers cadre, and from Manager cadre onwards, we don't show/give DA , but it will reflect in HRA (including the amount of DA). Is this correct method/policy, or should we have HRA & DA for all cadre of employee.
For eg: An employee who is in the post of Executive director/director, our Pay slip will have Basic Pay, HRA,TA, Other Allowances, Gross pay. Is this correct, or suggest me which is correct. can you send pay slip format. Employees are covered under PF & ESI.
17th September 2018 From India, Chennai
Dear Kritika,
Is there any specific reason to not show DA in the salary slip ? If no then you can surely show it as a part of salary slip.
17th September 2018
Purpose of pay slip is to show all components of pay-BP,BA,PF ESIC etc etc.
It should be self explanatory and easy to understand including tax calculations etc.
So redesign pay slip in accordance with state laws if any and its utility to employee.
17th September 2018 From India, Pune
It is purely based on the wage policy of the organisation!
17th September 2018 From India, Hyderabad
Organisation policy will have a systematic basis when designing or making any policy.
Here showing DA and HRA together is odd as they have different tax treatment.
Lumping the amount together is most unhelpful for an employee to understand his payslip and work out his tax liability.
17th September 2018 From India, Pune
Dear Colleague,
To give DA up to certain level and not to others is the policy decision of the organisation.
As regards the pay slip, include DA wherever applicable. I don't understand why it should clash with HRA in the payslip as both are two different components and they should appear in the payslip as per applicability.
Vinayak Nagarkar
HR- Consultant
18th September 2018 From India, Mumbai
Minimum wages specify Basic & Dearness Allowances. Also companies having more than 100 employees need to pay HRA @ 5% of Basic + DA.
Also HRA has certain taxation benefits, for persons staying on rent and produce rent receipt, therefore it is advisable to show Basic, DA and HRA as separate items in the payslip.
Thank you,
R H. Kavarana
HR Manager
18th September 2018 From India, Mumbai
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