Eligibility for Revised DA: Does Earning Above Minimum Wage Affect It?

I need your expert advice on the revised DA. If an employee is drawing a salary above the minimum wage, are they eligible for the revised DA? Please attach any relevant legal documents. Thank you.

Dear youth,

As you are aware, emoluments attached to a work/worker/workman are linked to minimum wages pertaining to the nature of duty grouped as unskilled/semi-skilled/skilled, etc. These minimum wages (MW) are divided into two parts - basic and DA. In some sectors, these are further divided into Fixed DA (FDA) and Variable DA (vDA). Periodically, central and state governments revise these rates under certain formulas, e.g., Consumer Price Index (CPI) and/or Wholesale Price Index (WPI). The mechanism of how this works is explained in various blogs on the internet which you can search for and learn.

Since DA is revised periodically, say once in a quarter or half-yearly based on the increase or decrease in the indexes of CPI/WPI to which the pattern followed in an establishment is linked. If you indicate any specific sector/state and nature of duty, you will get the query answered in detail. For further information, there are links provided on your side of the screen and bottom, search and use.

If any employee is drawing more than the minimum wages, and their current wages exceed the revised DA wages, there is no need to pay the revised wages.

Dear HR-Freshers-Academy,

I started writing a response to your query, but in the meantime, our learned member V K Rao has provided an answer that is to the point and understandable by freshers. However, there is always a different view in law. The D.A/FDA/VDA is an increase to compensate for the cost of living index. Therefore, I believe that one should receive the incremental value due to an increase in the cost of living index. Many employees, through collective bargaining, have successfully convinced their employers to grant this incremental value.

The answer to your question for the fresher academy is well addressed by V K Rao. An employee is not entitled to receive less than the minimum wage rate applicable to their category in the scheduled industry and zone they are in.

Please let me know if you need any further clarification.

Thank you.

Best regards,
[Your Name]