Dear Sir/Madam,
Greetings. I am R R Peri from Varanasi. While communicating about wages payable under the Minimum Wages Act, amounts payable are bifurcated into two categories, namely Basic Pay and Dearness Allowance, and the total amount payable is also mentioned therein. I hope that some will concur that the nature of work in different organizations is different, and accordingly, appointments are to be made and duties allocated as per the requirements of the organization.
Clarification on Dearness Allowance in Salary Slip
I need clarification from HR experts/colleagues as to whether, besides paying the basic pay as prescribed in the Minimum Wages Circular, it is necessary to mention "DA" in the salary slip specifically, or if the amount earmarked for Dearness Allowance can be paid under different heads (similar to conveyance allowance, statutory bonus, etc.), thereby fulfilling the total amount payable to a particular category of employees. Please guide me in this regard.
Regards,
R R Peri
From India, New Delhi
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Greetings. I am R R Peri from Varanasi. While communicating about wages payable under the Minimum Wages Act, amounts payable are bifurcated into two categories, namely Basic Pay and Dearness Allowance, and the total amount payable is also mentioned therein. I hope that some will concur that the nature of work in different organizations is different, and accordingly, appointments are to be made and duties allocated as per the requirements of the organization.
Clarification on Dearness Allowance in Salary Slip
I need clarification from HR experts/colleagues as to whether, besides paying the basic pay as prescribed in the Minimum Wages Circular, it is necessary to mention "DA" in the salary slip specifically, or if the amount earmarked for Dearness Allowance can be paid under different heads (similar to conveyance allowance, statutory bonus, etc.), thereby fulfilling the total amount payable to a particular category of employees. Please guide me in this regard.
Regards,
R R Peri
From India, New Delhi
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Dear colleague,
As per the Minimum Wages Act/Rules, the wages include basic and special allowance (DA). Therefore, you cannot pay the amount of DA under any other head, especially with a view to deprive him of benefits like HRA, bonus, gratuity, PF, and such other applicable payments for which DA is considered as a component.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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635As per the Minimum Wages Act/Rules, the wages include basic and special allowance (DA). Therefore, you cannot pay the amount of DA under any other head, especially with a view to deprive him of benefits like HRA, bonus, gratuity, PF, and such other applicable payments for which DA is considered as a component.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx
Special Allowance under Minimum Wages Act-1.1.2016 - 30.6.2016.pdf