Comeon yaar, what next ? What is salary?
OK.
Basic pay = A remuneration offered to an employee depending on nature/qualification/exp./responsibilities etc attached to a job. DA= Dearness Allw. Meaning an allowance to meet increase in prices of your day to day needs, an allw. to partially help U to buy things which have become dearer to you. In Govt. & Indl.sector this will vary depending on the movement of whole sale/consumer price indices, periodically announced by the Govt.
HRA= House Rent Allw, meaning an allw. meant to meet an employees housing exp.
Normally these allw. are expressed in terms of % on basic pay, saying DA @ 50%, HRA @ 20% on basic etc.
CCA = City compensatory allw. this is provided mostly by govt. sector @ 10 or 20% on basic pay.This not necessarily fixed as such. An employer can fix total remuneration as package all put together without splitting into basic pay, DA, HRA etc.
These terms are generally in vogue in govt.sector & corporate/big co. but not so much in small firms in private sector where they offer CTC (means cost to co.)which normally include meant to compensate other benefits like PF,Bonus, incentives, LTA, medical, conveyance, equivalent of food coupons etc. However,this is not uniform in all employers.
Right ?
TKS
Kumar
Bg.