Dear all, can anyone tell me if there is any recent Supreme Court judgment which states that Dearness Allowance (DA) is a compulsory component of salary? If there is such a judgment, could someone please share the details?
Thank you,
Mkitsu
From India, Mumbai
Acknowledge(0)
Amend(0)
1Thank you,
Mkitsu
From India, Mumbai
Acknowledge(0)Amend(0)
Agreed with Pon1965, and I want to draw attention to the "Airfreight Limited, Bangalore vs State Of Karnataka And Others on 30 March 1998," whose copy is enclosed for reference. This case defines the difference in basic salary and dearness allowances. The enclosed copy is for your reference.
Thanks and Regards,
Sumit Kumar Saxena
From India, Ghaziabad
Acknowledge(1)Amend(0)
Thanks and Regards,
Sumit Kumar Saxena
From India, Ghaziabad
Acknowledge(1)Amend(0)
Thank you both for those valuable inputs. Upon reading the Karnataka High Court judgment that Sumit has attached, it is apparent that if the employer is paying a total sum of money higher than the applicable minimum wages, then the employer is not required to pay any Dearness Allowance. Please correct me if I am wrong.
Thank you.
Best regards,
Mkitsu
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you.
Best regards,
Mkitsu
From India, Mumbai
Acknowledge(0)Amend(0)
Thanks for the clarification. It is not the total salary but the basic salary only that is considered. This implies that Dearness Allowance (DA) can be merged with the basic salary, but under no circumstances can it be lower than the defined minimum wages. This ruling is from the honorable Supreme Court of India.
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
Acknowledge(0)Amend(0)
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Dearness Allowance.xls
SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx