I am working in a small-scale company that manufactures Medicated Ayurvedic Oil. Our factory is located in D Zone, Maharashtra. I would like to ask, is it compulsory to pay the DA to employees?
From India, Solapur
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1From India, Solapur
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To pay Dearness Allowance (DA) or not is the choice of the organization; however, you have to pay the minimum wages applicable to your industry. For the state of Maharashtra, the government declares minimum wages under the two components: 1. Basic and 2. Special Allowance. Therefore, as an organization, you are required to pay the sum total of Basic + Special Allowance as minimum wages.
Furthermore, you also have to pay 5% of Basic + Special Allowance as House Rent Allowance (HRA) in the state of Maharashtra, as stipulated under the provisions of the Maharashtra Minimum House Rent Allowance Act.
Regards,
Preetam Deshpande
From India, Mumbai
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Furthermore, you also have to pay 5% of Basic + Special Allowance as House Rent Allowance (HRA) in the state of Maharashtra, as stipulated under the provisions of the Maharashtra Minimum House Rent Allowance Act.
Regards,
Preetam Deshpande
From India, Mumbai
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Rates of Minimum Wages w.e.f. 01-07-2010 in State of Haryana.pdf