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
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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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1656From India, Mumbai
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When an 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 of the components of a fixed basic and a variable dearness allowance linked to some cost of living index. This index is normally on an ascending trend. Such a trend results in 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 D.A. The failure of which would lead to contravention of non-payment of minimum wages under section 12, resulting in a claim u/s 20 of the MW Act, 1948. This involvement at times results in a heavy penalty of 10 times of the difference, in addition to payment of the wages actually due as per the minimum rates of wages.
Hence, inclusion of the component of variable D.A into the industry wage structure is highly recommendatory though not mandatory.
From India, Salem
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Hence, inclusion of the component of variable D.A into the industry wage structure is highly recommendatory though not mandatory.
From India, Salem
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02-Revised DA Applicable from 01-04-2013.pdf