Is it compulsory to have an element of "Dearness Allowance" inbuilt in "Salary"? My company does not have it. Is it an offence?
From India, Pune
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70From India, Pune
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Understanding Salary Structure Components
The salary structure is never uniform; rather, it varies from company to company. Normally, the following are salary components that form parts of the CTC (Cost to Company):
- Basic
- Dearness Allowance
- Overtime Allowance
- Bonus
- City Compensatory Allowance (CCA)
- Conveyance Allowance
- Medical Allowance
- Flexible Benefit Plan
- Leave Encashment
- Leave Travel Allowance
- Gratuity
- Children Education or Hostel Allowance
- And many more likewise.
It is not necessary that "Dearness Allowance" should be an inbuilt part of the salary. The Dearness Allowance normally forms part of the salary/wages, where it is linked with the rise and fall of the consumer price index based on the cost of living of working-class people.
Regards, BS Kalsi
From India, Mumbai
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The salary structure is never uniform; rather, it varies from company to company. Normally, the following are salary components that form parts of the CTC (Cost to Company):
- Basic
- Dearness Allowance
- Overtime Allowance
- Bonus
- City Compensatory Allowance (CCA)
- Conveyance Allowance
- Medical Allowance
- Flexible Benefit Plan
- Leave Encashment
- Leave Travel Allowance
- Gratuity
- Children Education or Hostel Allowance
- And many more likewise.
It is not necessary that "Dearness Allowance" should be an inbuilt part of the salary. The Dearness Allowance normally forms part of the salary/wages, where it is linked with the rise and fall of the consumer price index based on the cost of living of working-class people.
Regards, BS Kalsi
From India, Mumbai
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Dearness Allowance.xls
SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx