Understanding the Special Allowance for Maharashtra: What Changed from July to December 2012?

Please find attached a copy of the Special Allowance (Dearness Allowance) declared under the Minimum Wages Act, 1948, for the period of 01-07-2012 to 31-12-2012.

Thanks,

Sachin Ingole

Hi, I have received the revised state minimum wages for Maharashtra state, but there is some confusion as the State government stamp does not appear on the wages.

Regards, Anand Ingole

Please clarify whether it is a special allowance or Dearness Allowance because in your email, you mentioned "Dear allowance" in brackets. Special Allowance is different from Dearness Allowance. Dearness Allowance constitutes a part of Minimum Wages, and Special Allowance is at the discretion of the management.

Regards,
GEM

Dear Mr. Sachin, Good and useful information. But most of us get confused with this DA. Is it DA or Special Allowance? While structuring salary, is it compulsory to add this DA amount? I am giving an example for Maharashtra state as below, kindly let us all know how to work on it.

Example for Maharashtra State

1) Schedule - Engineering & Minimum wage - Rs. 3430/- & Special allowance (Jul-Dec 12) Rs. 2164.80/-. Total minimum wage (US worker) comes to Rs. 5595/-.

My Questions (Maharashtra State Only)

1) Is there any difference between SPECIAL ALLOWANCE & DEAR ALLOWANCE, or are both the same in this case?

2) Is it mandatory to consider/add this allowance/amount (e.g., Rs. 2164.80/-) in the minimum wage?

3) As per EPF norms, we have to calculate PF contribution on basic + DA. So while calculating PF, should we calculate the contribution on the amount of Rs. 5595/- or on Rs. 3430/-?

Hope you will clarify it.