Umakanthan53
Labour Law & Hr Consultant
Ravi5554
Asst.manager -hr
[email protected]
Assistant Manager-hr

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Is CA a compulsory component of salary? it there any upper limit of CA(City Compensatory Allowance)? can we ignore from this component?
Instead of CA special allowance can be used for balancing the gross pay


Salary component such as
Basic + Da + CA + HRA forms monthly gross pay
except CCA- City compensatory allowance other components have percentages fixed by compance
but CCA there is any upper limit?
can we ignore this allowance from gross pay?
can we add special allowance to balance the monthly gross Pay?


Dear Friend,
It is not mandatory that you have to give such components only. You can allocate any component in any manner. But it is also important to show tax exemption components for high salaried employees.

From India, Mumbai
Dear friend,
As far as I know, CCA is not a statutory component of the pay structure. As I understand the grant of C.C.A arises only when the same class/grade employees of an organization are posted in different locations of which some are big cities with substantial higher cost of living. Therefore, it automatically becomes a special allowance. As such it forms part of the gross salary depending on the place of work.

From India, Salem
I believe for places like GOA, CCA is mandatory. Correct me if I am Wrong.
From India, Dhanbad
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