Minimum wage for FTC has the condition of DA increase twice in year

GauravHRCareer
We are paying Salary already above Minimum wage to FTC (fixed term contract) - But Min Wage Act has the condition of DA increase twice in year.
So Do we have to increase DA twice in year for FTC? If yes, whats the meaning of having salary fixed in contract? (Like 15000 for one year mentioned in contact?)
Madhu.T.K
Fixed Term Employment does not mean that salary is fixed. It only means that the employment is for a fixed period, say one year, two years etc. Like all other employees, you should give salary to such fixed term contract employees also. That should include Dearness Allowance as per the current cost of living index. In some states the CPI is reviewed in three months, in some states, it is reviewed in six months and in some states it is done only annually. It is your responsibility to refix the salary of the FTC employees according to the CPI. If your state follows fixing of DA in every half year, then you should refix the salary of all employees accordingly. As already said, fixed term contract doe not mean 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.
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