Is Paying Dearness Allowance Mandatory for Small-Scale Companies in Maharashtra?

I am working in a small-scale company that manufactures Medicated Ayurvedic Oil. Our factory is located in D Zone, Maharashtra. I would like to ask, is it compulsory to pay the DA to employees?

To pay Dearness Allowance (DA) or not is the choice of the organization; however, you have to pay the minimum wages applicable to your industry. For the state of Maharashtra, the government declares minimum wages under the two components: 1. Basic and 2. Special Allowance. Therefore, as an organization, you are required to pay the sum total of Basic + Special Allowance as minimum wages.

Furthermore, you also have to pay 5% of Basic + Special Allowance as House Rent Allowance (HRA) in the state of Maharashtra, as stipulated under the provisions of the Maharashtra Minimum House Rent Allowance Act.

Regards,
Preetam Deshpande