Understanding DA Increases for FTC: Do We Need to Adjust Salaries Twice a Year?

We are paying a salary already above the minimum wage to FTC (fixed-term contract). However, the Minimum Wage Act requires a condition of DA increase twice a year. Do we have to increase DA twice a year for FTC? If yes, what's the meaning of having a salary fixed in the contract (like 15,000 for one year mentioned in the contract)?

Understanding Fixed-Term Employment and Salary Adjustments

Fixed-term employment does not mean that the salary is fixed. It only means that the employment is for a fixed period, such as one year, two years, etc. Like all other employees, you should give a salary to such fixed-term contract employees as well. This should include Dearness Allowance as per the current cost of living index.

Adjusting Salary According to CPI

In some states, the CPI is reviewed every three months, in some states every six months, and in others, it is done only annually. It is your responsibility to re-fix the salary of the FTC employees according to the CPI. If your state follows fixing DA every half year, then you should re-fix the salary of all employees accordingly.

Clarification on Fixed-Term Contracts and Fixed Salaries

As already mentioned, a fixed-term contract does not imply a fixed salary agreement. There cannot be any employment with a fixed salary. The salary should change when there is a change in the consumer price index.