Is Basic and DA Mandatory for Calculating Wages/Salary Structure..

nidhi-saini
Hello Everyone
This is Nidhi newly Joined a Cite HR. I don't know whether asking this is correct or not but I need to know that for calculating any Wages and Salary with or without CTC Basic and DA are mandatory in the structure.Please suggest me..
manojkamble
Dear Nidhi,
Yes, it is mandatory to have basic and DA / Special allowance as a part of monthly salary structure.
nidhi-saini
Thank u Sir for having your words.
rohyinton-rohyin-dear-kavarana
Hi,
Minimum wages specify Basic & Dearness Allowances. Also companies having more than 100 employees need to pay HRA @ 5% of Basic + DA.
Also HRA has certain taxation benefits, for persons staying on rent and produce rent receipt, therefore it is advisable to show Basic, DA and HRA as separate items in the payslip.
Thank you,
Regards,
R H. Kavarana
HR Manager
Today From India, Mumbai
Nagarkar Vinayak L
Dear madam,
It depends whether your establishment is covered under the Minimum wages Act and you are choosing to pay same wages as prescribed. The Act prescribes basic and special allowance (DA) for each skill level.
But if you pay more than minimum wages, no law will require you to pay basic and DA as separate components in the structure. You can pay what is called consolidated wages.( basic and DA merged)
Regards,
Vinayak Nagarkar
HR- Consultant
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