I just want to know, when DA is compulsory from the government side, why do most companies not mention it on the payslip? And if some companies do, they often do not follow the figures provided by the government. Please guide me as soon as possible.
Regards,
Vikas.
From India, Bangalore
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Regards,
Vikas.
From India, Bangalore
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Dear Vikas Pease share the information, under which provisons the DA is complusory, as mentioned by you. Thanking you Regards Shailesh Parikh Vadodara, Gujarat 99 98 97 10 65
From India, Mumbai
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305From India, Mumbai
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Vikas: DA is mostly there in all the govt organisations, State as well as Central govt. It is not compulsory for other establishments.
From India, Mumbai
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From India, Mumbai
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DA is Dearness Allowance, usually given so that employees can cope with rising inflation.
While pursuing my MBA, my professor mentioned that, on average, DA is calculated as around 20% of Basic. However, the actual calculation of DA is much more complicated.
Every year (or semi-annually—I am unsure of the time frame), the government indicates the inflation rate, based on which DA is calculated.
The calculation is a little tricky, and since it wasn't taught to us but rather shared by chance, I happened to forget the formula mentioned in that lecture.
I believe the calculations can be obtained from some government institute, as they are the ones who follow to explicitly include DA in their salary component.
Regarding private firms, as I mentioned, the calculations change periodically, adding to the complexity.
When I asked a similar question to my academic experts, they mentioned:
"Most private firms do not include DA explicitly to avoid the hassle of periodic calculations. The Basic they mention is considered as Basic + DA. So, if inspectors inquire, they would explain that due to inflation, DA increased, but Basic decreased relatively, keeping Basic + DA unchanged."
I am uncertain about the validity of this explanation, but this was the answer shared during our Compensation class.
Senior advice is much needed.
From India, Mumbai
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While pursuing my MBA, my professor mentioned that, on average, DA is calculated as around 20% of Basic. However, the actual calculation of DA is much more complicated.
Every year (or semi-annually—I am unsure of the time frame), the government indicates the inflation rate, based on which DA is calculated.
The calculation is a little tricky, and since it wasn't taught to us but rather shared by chance, I happened to forget the formula mentioned in that lecture.
I believe the calculations can be obtained from some government institute, as they are the ones who follow to explicitly include DA in their salary component.
Regarding private firms, as I mentioned, the calculations change periodically, adding to the complexity.
When I asked a similar question to my academic experts, they mentioned:
"Most private firms do not include DA explicitly to avoid the hassle of periodic calculations. The Basic they mention is considered as Basic + DA. So, if inspectors inquire, they would explain that due to inflation, DA increased, but Basic decreased relatively, keeping Basic + DA unchanged."
I am uncertain about the validity of this explanation, but this was the answer shared during our Compensation class.
Senior advice is much needed.
From India, Mumbai
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Company Policies on Pay Packages
Every private or public limited company has the liberty to formulate its own policy regarding pay packages for its employees, as there is no enactment binding them to pay DA as a compulsion. It is a management decision, keeping in view manpower availability and its best HR policies.
From India, Delhi
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Every private or public limited company has the liberty to formulate its own policy regarding pay packages for its employees, as there is no enactment binding them to pay DA as a compulsion. It is a management decision, keeping in view manpower availability and its best HR policies.
From India, Delhi
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Maharashtra DA,Special allowance July 14 to Dec 14 - Notification.pd f
Managing Internal Best Practices and communicating them throughout a company..doc
Dearness Allowance.xls
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(Fact Checked)-The user's reply is partially correct. Dearness Allowance (DA) is not only applicable to government employees but can also be provided by private companies. It is not mandatory for all establishments, but some private companies may choose to offer it. The user's response is generally accurate but could benefit from more clarity. (1 Acknowledge point)