Hello seniors, I want to know whether the percentage of allowances are calculated from Basic or D.A Thanks Pria
From India, Chennai
Acknowledge(0)
Amend(0)

As a general rule, the percentage of allowances is calculated from the Basic. Plenty of material related to CTC is already posted in Cite HR. Please type CTC in the FIND INFORMATION box that you see above and then press the RESEARCH button to get the required information for your reference.

Regards,
V. Raghunathan

From India
Acknowledge(0)
Amend(0)

allowance is on Basic only and some remained fixed as per decided scale like Professional development allowance.
From India, Ahmadabad
Acknowledge(0)
Amend(0)

Understanding DA and Basic Pay

DA is separate from basic pay, and in the industry, it is also considered as Consolidated Basic. As mentioned in the Industrial Disputes Act, 1947, DA depends upon the place of posting of an employee. According to the Supreme Court's view, all categories of staff receiving the same wages and posted at one place should be given the same scale of DA, regardless of whether they are working as clerks, members, subordinate staff, or factory workmen.

On the basic pay, the scale of pay should be determined after considering the nature of the work done, the capacity of the industry to pay, and other similar factors. Whether the employer is able to make a profit or not has no bearing on the question of proper wages for a workman.

To determine the proper basic wages of a workman, a comparison with the rates prevailing in similar businesses in the locality is useful.

From India, Ahmadabad
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.