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Notification Details
FYI - The notification regarding the wages of housekeeping is not separate; it falls under the Shops and Establishment Act. Therefore, in the notification, you need to extract the Shops & Establishment basic and DA.
Understanding Dearness Allowance and Special Allowance
First of all, understand the meaning of the words Dearness Allowance and Special Allowance. Dearness Allowance is based on the Consumer Price Cost Index (CPCI) and is calculated as per the agreement between the company and the union in a unionized company. Special Allowance is declared once every six months in Maharashtra State. It is declared to set the minimum wages for unskilled, semi-skilled, skilled, and highly skilled employees.
I am providing this clarification because in one company, the management mistakenly wrote Dearness Allowance instead of Special Allowance, which led to significant issues before it was rectified.
Dear Clement, can you please let us know the difference between DA and Special Allowances and to whom each is applicable? If we employ housekeeping staff, technicians, electricians, and security guards, in addition to their basic wages, do we need to pay DA, Special Allowances, or both?
Would you please tell me what is the applicable minimum wage and Dearness Allowance (D.A.) for the employees working in a factory registered under the Factories Act and situated in MIDC Shiroli, Kolhapur? Please reply as it is very urgent for me.
Could you please inform me how many VDA are merged into the basic pay for shop and other establishment employees? Also, kindly provide information on the new VDA rates effective from July 24, 2019.
I would appreciate a prompt response.
Thank you,
Haresh Lohar
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