Hi, Could anyone let me know how is Dearness allowance paid in major companies?
From India, Ahmadabad
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2From India, Ahmadabad
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Hi,
DA is calculated based on the Wholesale Price Index, which is the basis for calculating inflation in India. Now, the majority of companies have done away with DA except for the government and public sector in India. The reason is that DA is supposed to be added to the basic salary when calculating terminal benefits like Gratuity, Bonus as per the Bonus Act, etc.
Now, don't ask me how inflation is calculated...just joking. If you don't know, let me know.
The Employers State Federation of India (ESFI) will provide a monthly update by the 20th of the month on the inflationary points based on which DA calculations are involved in these companies. Your city will have an ESFI branch. Check it out if you need to. You will have to take membership with them. They are the central/state government authorized agency for this data.
Regards
From India
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DA is calculated based on the Wholesale Price Index, which is the basis for calculating inflation in India. Now, the majority of companies have done away with DA except for the government and public sector in India. The reason is that DA is supposed to be added to the basic salary when calculating terminal benefits like Gratuity, Bonus as per the Bonus Act, etc.
Now, don't ask me how inflation is calculated...just joking. If you don't know, let me know.
The Employers State Federation of India (ESFI) will provide a monthly update by the 20th of the month on the inflationary points based on which DA calculations are involved in these companies. Your city will have an ESFI branch. Check it out if you need to. You will have to take membership with them. They are the central/state government authorized agency for this data.
Regards
From India
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Method of calculation of wages.doc
Dearness Allowance.xls