Dear Member
To pay DA or not is the choice of the organisation, however you have to pay minimum wages applicable to your industry.
For the state of Maharashtra the govt declares minimum wages under the two components 1. Basic & 2. Spl. Allowance. So as an organisation who are required to pay the sum total of Basic + Special Allowance as minimum wages.
Further more you have to also pay 5% of Basic + Special allowance as HRA in the state of Maharashtra as stipulated under the provisions of Maharashtra Minimum House Rent Allowance Act.
Regards
Preetam Deshpande