Umakanthan53
Labour Law & Hr Consultant
Nagarkar Vinayak L
Hr And Employee Relations Consultant
KK!HR
Management Consultancy
Glidor
Hr Consultant

Dear Sir, I am regularly following the various issues discussed in this forum. I am grateful for the many voluntary bits of help supplied by the experts.

I have the following query for which I seek an expert opinion. In many private unaided schools, the staff is given the Dearness Allowance. Is it mandatory that all employees in the same institution must get the same percentage of DA?

I found it is practiced in some of such institutions that for two years they keep an employee with consolidated pay under probation, during which no DA is paid. On the third year, an employee is made a regular employee, and at that time that regular employee is also given the same percentage of DA enjoyed by all the other employees. Is it enough that the newly regularized employee be given a smaller percentage of DA and not the same percentage as that of the already regularized employees who have been working in the institution for many years. Thanking you in advance, Xavier.

From India, Chandigarh
Dear colleague,
In principle , a senior should be paid higher emoluments as compared to junior reflecting fair differential communsurate with seniority and performance.
Your query about percentage of D.A is unclear. Please clarify this percentage of DA is linked to what? Is it linked to Basic?
Advice will be given upon receipt of clarification.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant to

From India, Mumbai
FR.XAVIER T C <[email protected]>

3:36 PM (15 minutes ago)

to CiteHR

Clarification of the query: DA is calculated as a certain fixed percentage of the sum total of the Basic pay + Grade pay + annual increment and any other benefits enjoyed by the employee. Annually there will be an increase in the percentage of DA. Therefore, although the percentage of the DA is the same for all employees the amount will be naturally more for an employee with many years of service. The bone of contention is with regard to the percentage for the employee whose service is confirmed recently. There will certainly be a difference in the total salary of the seniors and the one who is confirmed recently, even if the same DA is given also to that employee. Should there be variation in the percentage between the junior who joined after two years of probation and the seniors is the question? A related question is: Is it mandatory that all the employees of the same category ( Teaching Staff, Office staff, auxiliary staff, etc) in an institution should be paid the same percentage of DA? Can there be a difference in the percentage of DA for a single employee in the same category for the reason that the said employee is recently confirmed in service?

I hope my enquiry is clearer now.

From India, Chandigarh
@Xavior
With seniority the basic gets increased and DA is just a component which is added to basic, DA term stands for Dearness Allowance, and it is notified by the affiliated board mostly once or twice in a year, and the institution has to follow the board circulars,
salary scale may be varied by increasing or freezing the basic, but other variable components percentile is as per the board and state govt circulars, they can not be modified person to person, irrespective of the experience tenure, seniority reflects in basic pay scale and other perks offered to the person by the institute


There is no legal mandate necessitating payment of DA as a fixed % across different cadres, indeed there is no legal provision to the contrary also. The Minimum Wages Act 1948 stipulates payment of 'çost of living allowance' linked with the Consumer Price Index as one of the minimum wage components. The respective State Governments notify the minimum wages including the periodical revision of DA for the various categories of employment mentioned therein. So long as the total salary thus paid is equal or more than the sum total of minimum wages thus prescribed, the quantum of DA component wouldn't matter much.
From the description given, the salary administration done is proper and justified. Though DA as % remains fixed across different cadres, but the amount would progressively decrease along with seniority. This is the pattern in most Government organisations, PSUs and is widely accepted.
Keeping different percentages is an option you have, but it will complicate the wage fixation and would really add to the frustration of those employees who feel shortchanged in the process. Perhaps there may not be any litigation in the matter, yet the question remains, is it really worth?

From India, Mumbai
Dear Xavier,
" Eduction is an industry whereas a teacher employed therein is not a workman " is the general principle enunciated by the Apex Court. If I remember correct, the EPF Act, 1952 and the PG Act, 1972 are the only labor laws applicable to teachers in private schools and colleges. However, the non-teaching staff come under the purview of labor laws including the IDA, 1947 subject to the conditions of applicability. Therefore regarding disparity in salary of teaching faculty without any valid reason can only be agitated under the provisions of any State Law governing the conditions of service of teachers in private educational institutions. Pl check with your State School Education Department.
In so far as non-teaching members of staff are concerned, you can make use of the provision if any mentioned above or collectively raise an industrial dispute under the IDA, 1947 before the area conciliation officer.
You should better remember that the Supreme Court held in Airfreight's case that salary is to be construed as a single package for comparison purpose. However, if two sets of rules of service conditions are applied by the employer for the same class of employees without any valid reason, it's untenable.

From India, Salem
Dear contributors to my query on the DA to the employees of Educational Institutions.
I feel extremely grateful to your generous and expert advice. Your timely assistance has helped me and maybe many more others who may have a similar issues to deal with.
Thanking you,
With warm regards,
Xavier.

From India, Chandigarh
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