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.
R H. Kavarana
Today From India, Mumbai
18th September 2018 From India, Mumbai
It depends whether your establishment is covered under the Minimum wages Act and you are choosing to pay same wages as prescribed. The Act prescribes basic and special allowance (DA) for each skill level.
But if you pay more than minimum wages, no law will require you to pay basic and DA as separate components in the structure. You can pay what is called consolidated wages.( basic and DA merged)
20th September 2018 From India, Mumbai