Labour Law Related - Jpg Download

Dear all,
I am in a outsourcing company.Our employees are working in various shops and establishments.Their salary break up consists of Basic,HRA and CCA.Now the labour inspector is saying that we have to change the break up and include the DA along with the basic as a mandatory salary component.Now the client is asking for the same change in the break up of the employees.
Now I want to know whether DA is mandatory as a salary component for employees working in various shops and establishments under the shop and establishment act.Please help n suggest as the issue is creating big problem.

Hi Satyabrata,
Please let please check the applicable shops and establishments acts of these locations, per my understanding DA is not a mandatory component in one's CTC. It varies from company to company and the compenstaion structures being followed.
Let me know if u want to know anything else
regards
Govil

Dear Friend,

There are two cases to be followed:-

Case 1:-

When basic salary is more than equal to minimum wage then DA is not mandatory.

Case 2:-

If basic salary is less than equal to minimum wage then DA is mandatory to make it equal to minimum wage.

Regards

Pankaj Chandan

Dear Satyabrata,
Plz go through your State minimum wages notification. There may be two components comprising in this notification i.e. Basic & D A & if there is an increase in the DA component then he might be asking the employer to increase this amount. You may also discuss the matter with the concerning Inspector for clarification.

Regards,
R.N.Khola
Skylark Associates, Gurgaon(Haryana)
(Labour Law & Legal Consultants)
09810405361

Dear,
I agree with Mr. Khola about the state requirements(see in Delhi the minimum wages is Basic+DA but in Haryana its only Basic ,no DA is mandatory).
If your basic is above than the minimum wages as in your case for worker's salary and your state is also required D.A. as a mandatory components then please change the structure of your salary means split the D.A. part from the Basic.
If your basic is less than the minimum wages and your state is also required D.A.in mnimum wages,then re-structure of the salary by reducing the allowances until your Basic+D.A. meet with state minimum wages requirements.
Incase your basic is more than minimum wages & no D.A. is requred for your state then please let me know the labour inspector name,i will talk to him personnally.
Please call me incase you have more question in your case
Best Regards
Sajid Ansari-Delhi

Thanks for the info....Actually our H.O is based at Noida but our branch office is at bangalore and the employees are working at various shops in bangalore only...