Understanding Dearness Allowance: Is It Necessary If We Already Pay Basic and Special Allowance?

divya-jha

What is the other name or component of Dearness Allowance? Our company is paying Basic and Special Allowance. Do we need to pay DA?

Nagarkar Vinayak L

Dear colleague,

For Dearness Allowance (DA) under the Minimum Wages Act/Rules, it is referred to as Special Allowance, and it is revised every six months.

If your Special Allowance is the same as stipulated in the Minimum Wages Act/Rules, you do not need to pay a separate Dearness Allowance.

Regards,
Vinayak Nagarkar
HR Consultant

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