DA - Why Mostly Company Are Not Mentions It In Payslip?

vikasverma1140@gmail.com
Greetings,
I just want to know when DA is compulsory from the government side then why mostly company are not mentions it in payslip and if some of the companies do also then they wont follow the figures given by the government.
Please guide me as soon as possible.
Regard\'s
Vikas.
Shailesh Parikh_HR Pro
Dear Vikas
Pease share the information, under which provisons the DA is complusory, as mentioned by you.
Thanking you
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
dixonjose02
Vikas:
DA is mostly there in all the govt organisations, State as well as Central govt.
It is not compulsory for other establishments.
vikasverma1140@gmail.com
Greetings,
Thanks a lot for the guidance.
Please go through the link.
https://www.citehr.com/405621-revisi...u-for2012.html
Regard's
Vikas
shah01ankita
Hello Vikas,

DA is Dearness Allowance.

This is usually given so that the employees can live with the rising inflation.

While I was pursuing my MBA, my professor told me that on an average we calculate DA as around 20% of Basic.

However the actual calculation of DA is much complicated.

Every year (or semi annually - I am unaware of time frame) the government indicates the inflation rate according to which DA is to be formulated and calculated.

The calculation was a little tricky and since it was not taught to us, just shared by chance, I happen to forget the formula that was mentioned in that lecture.

I believe the calculations can be obtained from some government institute as they are the ones who follow to include DA in their salary component explicitly.

As far as private firms are concerned, as I said the calculation keeps on chaging periodically and it adds to the headache.

When I had asked similar question to my academic experts, they said the foll:

"Most private firms do not include DA explicitly to avoid the hassels of calculations periodically. The Basic that they mention is considered as Basic + DA. So if the Inspector asks they would say because of inflation DA is increased but basic went down relatively so that your Basic + DA do not change."

I am unsure how good or bad or approved this reason is, but this was the answer shared to us during our class on Compensation.

Senior's advice is very much needed.
mannupauri
Every private or public limited company has liberty to formulate its own policy,regarding its pay packages for its employees as there is no enactment binding them to pay as DA as compulsion. It is management decision keeping in view the man power availability and also its best HR Policies.
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