Our company is based in Mumbai. We do not have Dearness Allowance in our compensation structure, but we have Special Allowance salary components. Are Dearness Allowance and Special Allowance the same for Gujarat state? Do we need to calculate the PF and Gratuity based on the percentage of Basic salary or Basic + Special Allowance percentage?
From India, Ahmedabad
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Hi,

Both are not the same. You need not calculate EPF/Gratuity on Special Allowances. If you are from HR, it is a task for you to ask your management to consider DA instead of SA or to keep SA as well. Try to act in the interests of the employees at large.

From India, Hyderabad
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Dear colleague,

If the Minimum Wages Act is being applied, then Dearness Allowance and Special Allowance mean the same thing. If not, they are two different components in the salary structure.

Regards,
Vinayak Nagarkar
HR- Consultancies

From India, Mumbai
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