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
Acknowledge(0)
Amend(0)
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
Acknowledge(0)Amend(0)
1593From India, Mumbai
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
Hence, inclusion of the component of variable D.A into the industry wage structure is highly recommendatory though not mandatory.
From India, Salem
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
The Tamil Nadu Minimum Wages Dearness Allowance Notification March 2019.pdf