Is the increased DA (twice a year) payable to an employee receiving less than the announced DA, or must it be paid regardless of the DA he/she is currently receiving? Is there a limit on who should receive it?
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From India, Buldana
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65Please let me know if you need further assistance.
From India, Buldana
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The government declares DA twice a year (in January and July) for government employees and pensioners, and it is not applicable for any private companies. For private companies, it will be considered once during the appraisal time. For worker-level wages, the increase will be calculated by the Cost Price Index (CPI) Points as per the Minimum Wages Act by the appropriate government.
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From India, Kumbakonam
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If you provide more clarity in your query, our members will respond with the correct information.
From India, Kumbakonam
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Thank you, Bhaskar. Let me clarify my query by taking two employee Basic and Dearness Allowance bifurcation only:
Case-1: Basic ₹2800/- and DA is ₹1500/-
Case-2: Basic ₹2800 and DA is ₹2000/-
Now, suppose as per Labour Law, the minimum DA for any employee has been revised from ₹1500 to ₹1700, i.e., an increase of ₹200.
Will this increase of ₹200 in DA be payable to both the employees or to Case 1 employee only as he was getting lower DA as per the revised DA?
From India, Buldana
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Case-1: Basic ₹2800/- and DA is ₹1500/-
Case-2: Basic ₹2800 and DA is ₹2000/-
Now, suppose as per Labour Law, the minimum DA for any employee has been revised from ₹1500 to ₹1700, i.e., an increase of ₹200.
Will this increase of ₹200 in DA be payable to both the employees or to Case 1 employee only as he was getting lower DA as per the revised DA?
From India, Buldana
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Clarification on DA Applicability for Workers
The government has declared DA for government employees, and it is not applicable to any companies or workers. For workers, there will not be any increase in DA. The wages for workers will be governed by the Minimum Wages Act, which is fixed by the appropriate government. This takes into account the Cost of Living Index of the workplace (Zone I or A (City or Urban), Zone II or B (Semi-Urban), and Zone III or C (Rural)) for Unskilled, Semiskilled, Skilled, and High-skilled categories.
The increase will be communicated by the government from time to time, and we have to implement the same by increasing the wages. Whatever the government fixes as wages includes Basic and DA, but we should not bifurcate for the purpose of PF deduction.
Regards
From India, Kumbakonam
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The government has declared DA for government employees, and it is not applicable to any companies or workers. For workers, there will not be any increase in DA. The wages for workers will be governed by the Minimum Wages Act, which is fixed by the appropriate government. This takes into account the Cost of Living Index of the workplace (Zone I or A (City or Urban), Zone II or B (Semi-Urban), and Zone III or C (Rural)) for Unskilled, Semiskilled, Skilled, and High-skilled categories.
The increase will be communicated by the government from time to time, and we have to implement the same by increasing the wages. Whatever the government fixes as wages includes Basic and DA, but we should not bifurcate for the purpose of PF deduction.
Regards
From India, Kumbakonam
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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