Dear All, Geetings for the day!!! We are a new startup under Shops and Commercial establishments. Is it manditory to pay DA as pay structure component? Please let me know. Kind Regards Shreyas
From India, Bengaluru
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6From India, Bengaluru
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HI, DA is nothing but Dearness Allowance and its not compulsory in salary strucher.
From India, Mumbai
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From India, Mumbai
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Hi, its not necessary...while you are offering salary keep in mind it not less than Minimum Wages(including Basic+Spl.Allowance)
From India, Mumbai
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From India, Mumbai
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Yes, you can exclude it. However, in that case, you need to ensure that the basic pay of the employee is higher than the Basic + DA mentioned in the minimum wage notification currently applicable (and keep revising if it falls below the limit).
From India, Mumbai
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From India, Mumbai
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In case your establishment is covered under the Minimum Wages Act, you have to pay the minimum wages stipulated. The minimum wages payable per month can be bifurcated as Basic and other allowances as per the company policy, or you can pay a lump sum amount as wages. It should not be less than the minimum wages.
From India, Hyderabad
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From India, Hyderabad
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Dear Members, not an compulsory component to pay as per Shops & Est act, but in case if you are a contractor employer, then at the time of auditing the audit will be questioned.
From India, Chennai
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From India, Chennai
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Dearness Allowance in Salary Structure
Dearness allowance is a component of salary and wages under the Payment of Wages and Minimum Wages Act. It can be omitted, but you have merged it with the basic salary.
Thanks and regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Dearness allowance is a component of salary and wages under the Payment of Wages and Minimum Wages Act. It can be omitted, but you have merged it with the basic salary.
Thanks and regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Under the minimum wages act the basic salary is combination of Basic+D.A. if the basic salary is higher than minimum wages than it is not mandatory to show D.A. in salary Structure.
From India, Jaipur
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From India, Jaipur
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Understanding Basic and Dearness Allowance (DA)
As you all have mentioned that Basic + DA is what we refer to as basic exactly, then why is DA not compulsory? What is the reason for this? Could someone please elaborate on this for general knowledge?
Insights on Minimum Salary Wages
Additionally, if possible, please share some insights on minimum salary wages. How is it determined and on what criteria has it been set?
Thank you.
Regards
From India, Gurgaon
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As you all have mentioned that Basic + DA is what we refer to as basic exactly, then why is DA not compulsory? What is the reason for this? Could someone please elaborate on this for general knowledge?
Insights on Minimum Salary Wages
Additionally, if possible, please share some insights on minimum salary wages. How is it determined and on what criteria has it been set?
Thank you.
Regards
From India, Gurgaon
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Minimum Wages and Dearness Allowance Information
Information pertaining to minimum wages applicable to various industries can be obtained from the information and statistics section of the Labour Department (Office of the District Labour Officer) in your State/District.
Dearness Allowance (DA) Methods
Regarding Dearness Allowance, companies adopt various methods. Some companies split up Dearness Allowance as FDA (Fixed DA) - a certain percentage of the basic salary, and Variable DA (VDA) - which is determined based on the Consumer Price Index numbers received from the Labour Bureau, Shimla.
Whether you have a Dearness Allowance component or not, the total emoluments should be greater than or equal to the minimum wages declared by the authority applicable to your industry in your State. This is to be kept in mind.
Thanks,
R K Nair
From India, Aizawl
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Information pertaining to minimum wages applicable to various industries can be obtained from the information and statistics section of the Labour Department (Office of the District Labour Officer) in your State/District.
Dearness Allowance (DA) Methods
Regarding Dearness Allowance, companies adopt various methods. Some companies split up Dearness Allowance as FDA (Fixed DA) - a certain percentage of the basic salary, and Variable DA (VDA) - which is determined based on the Consumer Price Index numbers received from the Labour Bureau, Shimla.
Whether you have a Dearness Allowance component or not, the total emoluments should be greater than or equal to the minimum wages declared by the authority applicable to your industry in your State. This is to be kept in mind.
Thanks,
R K Nair
From India, Aizawl
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Special Allowance under Minimum Wages Act-1.1.2016 - 30.6.2016.pdf
SELF-CERTIFICAT E PROFORMA UNNDER THE MINIMUM WAGES ACT, 1948.doc