The company where I am working as HR belongs to the General Engineering sector. I have this query:
Is DA applicable to employees of Private Limited Companies?
As I was told it is not mandatory, please clarify.
Thanks,
Human Resources
From India, Trivandrum
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Is DA applicable to employees of Private Limited Companies?
As I was told it is not mandatory, please clarify.
Thanks,
Human Resources
From India, Trivandrum
Acknowledge(0)Amend(0)
Separate accounting for DA is not mandatory so long as notified Minimum Wages are paid to the employees.
From India, Mumbai
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1593From India, Mumbai
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Minimum Wages Act and Variable Dearness Allowance
When employment is brought under the Schedule of the Minimum Wages Act, 1948 by the appropriate government, the initially devised and periodically revised structure of the minimum rates of wages invariably comprises components of a fixed basic and a variable dearness allowance (DA) linked to some cost of living index. This index is normally on an ascending trend. Such a trend results in a periodical rise of the statutory minimum wages and compels a constant parity between the statutory minimum wages and the industry wages, with or without the component of DA. The failure to maintain this parity would lead to contravention of non-payment of minimum wages under section 12, resulting in a claim under section 20 of the MW Act, 1948. This involvement at times results in a heavy penalty of 10 times the difference, in addition to the payment of the wages actually due as per the minimum rates of wages.
Hence, the inclusion of the component of variable DA into the industry wage structure is highly recommended, though not mandatory.
From India, Salem
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When employment is brought under the Schedule of the Minimum Wages Act, 1948 by the appropriate government, the initially devised and periodically revised structure of the minimum rates of wages invariably comprises components of a fixed basic and a variable dearness allowance (DA) linked to some cost of living index. This index is normally on an ascending trend. Such a trend results in a periodical rise of the statutory minimum wages and compels a constant parity between the statutory minimum wages and the industry wages, with or without the component of DA. The failure to maintain this parity would lead to contravention of non-payment of minimum wages under section 12, resulting in a claim under section 20 of the MW Act, 1948. This involvement at times results in a heavy penalty of 10 times the difference, in addition to the payment of the wages actually due as per the minimum rates of wages.
Hence, the inclusion of the component of variable DA into the industry wage structure is highly recommended, though not mandatory.
From India, Salem
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Minimum Wages -Special Allowance.pdf
MINIMUM WAGES Amendment in Private Security.rar