The company where I am working as HR belongs to General Engineering sector, I have this query:
Is DA applicable to employees of Private Limited Companies, as I was told it is not mandatory? Please clarify.
Thanks, Human Resources
From India, Trivandrum
Is DA applicable to employees of Private Limited Companies, as I was told it is not mandatory? Please clarify.
Thanks, Human Resources
From India, Trivandrum
Separate accounting for DA is not mandatory so long as notified Minimum Wages are paid to the employees.
From India, Mumbai
1530From India, Mumbai
When an employment is brought under the Schedule of the Minimum Wages Act, 1948 by the Appropriate Government, the initially devised and periodically revised structure of the minimum rates of wages invariably comprises of the components of a fixed basic and a variable dearness allowance linked to some cost of living index or other which is normally on an ascending trend. Such a trend results in periodical rise of the statutory minimum wages and compels a constant parity between the statutory minimum wages and the industry wages with or without the component of D.A and the failure of which would lead to contravention of non-payment of minimum wages under section 12 resulting in claim u/s 20 of the MW Act, 1948 involving at times the heavy penalty of 10 times of the difference in addition to payment of the wages actually due as per the minimum rates of wages.
Hence, inclusion of the component of variable D.A into the industry wage structure is highly recommendatory though not mandatory.
From India, Salem
Hence, inclusion of the component of variable D.A into the industry wage structure is highly recommendatory though not mandatory.
From India, Salem
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02-Revised DA Applicable from 01-04-2013.pdf