Hi, Please guide me on DA to be paid for an employee as per min wage act of Kerala. Is it mandatory for private company employees?
From India, Kochi
From India, Kochi
If the total amount paid is not less than the sum of the basic wages and dearness allowance fixed by the government as the minimum wages, there is no need to give DA. But for all purposes including calculating bonus, leave encashment and even gratuity that total wages should be considered.
You should remember that an employee is given salary increase for two basic reasons, one, to reward his performance and, two, to compensate the increasing cost of living. The former is identified by means of an increase in the basic salary and the latter by means of increase in DA. There are companies which give salary increase every year but the same is not reflected either in basic salary or in DA (In many establishments DA is not a component of salary) but is put under a separate head, may be "special allowance" or even "other allowance". Special allowance is an allowance paid only to some employees considering special skill that they put in to do the task. If it is a component of salary payable to all the employees it will be deemed as part of basic wages only. Again, there is no allowance called 'other allowance'!! There can be travelling or conveyance allowance, house rent allowance, night shift allowance, hill allowance, winter allowance and so many allowances but what is "other allowance"? Therefore, ensure some basic things about compensation management before fixing the right salary.
From India, Kannur
4249You should remember that an employee is given salary increase for two basic reasons, one, to reward his performance and, two, to compensate the increasing cost of living. The former is identified by means of an increase in the basic salary and the latter by means of increase in DA. There are companies which give salary increase every year but the same is not reflected either in basic salary or in DA (In many establishments DA is not a component of salary) but is put under a separate head, may be "special allowance" or even "other allowance". Special allowance is an allowance paid only to some employees considering special skill that they put in to do the task. If it is a component of salary payable to all the employees it will be deemed as part of basic wages only. Again, there is no allowance called 'other allowance'!! There can be travelling or conveyance allowance, house rent allowance, night shift allowance, hill allowance, winter allowance and so many allowances but what is "other allowance"? Therefore, ensure some basic things about compensation management before fixing the right salary.
From India, Kannur
Thank you sir for the valuable inputs,. Could you please send me the wages fixed as per minimum wages Act of kerala?
From India, Kochi
From India, Kochi
There are different wages for different scheduled industries. You can easily get the updated minimum wages from the official website of the labour department. Please follow the link below.
https://lc.kerala.gov.in/en/minimum-wage-notifications
If your industry does not fall under any of the scheduled industries mentioned there, you can pay wages which is almost similar to the one notified.
For each scheduled industry there will be dearness allowance which is to be calculated based on the consumer price index. The CPI of various districts/ places is published by the Department of Economics and Statistics. Please follow the link to get the latest CPIs.
http://www.old.ecostat.kerala.gov.in/index.php/cpindex2011-2012
How the DA is arrived at will be mentioned in the minimum wages notification itself.
From India, Kannur
https://lc.kerala.gov.in/en/minimum-wage-notifications
If your industry does not fall under any of the scheduled industries mentioned there, you can pay wages which is almost similar to the one notified.
For each scheduled industry there will be dearness allowance which is to be calculated based on the consumer price index. The CPI of various districts/ places is published by the Department of Economics and Statistics. Please follow the link to get the latest CPIs.
http://www.old.ecostat.kerala.gov.in/index.php/cpindex2011-2012
How the DA is arrived at will be mentioned in the minimum wages notification itself.
From India, Kannur
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