Dear GEM,
Kindly pardon me for taking time to reply you. I was expecting someone else will reply you and continue the discussion.
According to Sec 4, the minimum wage rate may consist of:
(i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the “cost of living allowance”); or
(ii) a basic rate of wages with or without the cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concessional rates, where so authorised; or
(iii) an all inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.
The special allowance which is being declared by Maharashtra Govt. in the interval of 6 month is calculated by the competent authority on average of the cost of living index number for six months. Therefore, the special allowance denotes Cost of living allowance i.e. dearness allowance.
I hope that I have answered to your question up to your satisfaction.
Thanks and regards.
Keshav Korgaonkar
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