Kindly clarify if DA is Statutory for a private company to pay? Hope to get some decent answers soon. Thanks, Faizan
From India, Delhi
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1From India, Delhi
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Good Afternoon Faizan,
Our company specializes in Staffing & Payroll management. If you want me to provide a checklist of points to be noted while handling payroll, please send an email with your specific queries to my email address
, or you may contact me on my cell for any clarifications. My number is 09028951253.
Regards,
Nikhil Umberkar
www.vinsys.in
From India, Pune
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Our company specializes in Staffing & Payroll management. If you want me to provide a checklist of points to be noted while handling payroll, please send an email with your specific queries to my email address
Regards,
Nikhil Umberkar
www.vinsys.in
From India, Pune
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DA is part of the minimum wages prescribed by State Governments. The basic pay + DA is the minimum wage. The basic pay can be fixed as a single entity by adding the DA. Alternatively, the minimum wages can consist of two components, i.e., Basic Pay and DA.
S. Krishnamoorthy
From United States, Roslindale
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S. Krishnamoorthy
From United States, Roslindale
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It is true that Minimum Wages take care of the cost of living index, price index, or whatever. So, giving DA is not statutory. But my question is a little bit different. Suppose a private company shows Basic and D.A. separately on Payroll/Payslip, is it necessary that all regulations governing DA, including periodical revision in DA, are binding to it? Second, what is the logic when some companies keep D.A. separate on Payroll? Is there any harm or a possible problem on account of it?
Expert advice solicited. What should be the ideally worked-out Pay Structure for Indian companies?
Thanks
From India, Surat
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Expert advice solicited. What should be the ideally worked-out Pay Structure for Indian companies?
Thanks
From India, Surat
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Dear Faizan,
Please check the thread name given below posted here in cite hr by a member. Hopefully, it will be helpful to you. However, please do cross-check its authenticity:
Is it necessary to show DA separately in salary design?
From India, Mumbai
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Please check the thread name given below posted here in cite hr by a member. Hopefully, it will be helpful to you. However, please do cross-check its authenticity:
Is it necessary to show DA separately in salary design?
From India, Mumbai
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There is no law making payment of dearness allowance compulsory. However, most minimum wage notifications of State Governments have a DA component linked to some Consumer Price Index Number. In case you are paying as per these minimum wage notifications, then it is a statutory obligation when the State government raises the minimum wage by increasing the DA component to pay the same. Also, if you have signed a long-term settlement with your union which includes a formula for payment of DA, then it becomes a contractual obligation to do so, and any violation will be taken up by the union under Section 33C of the Industrial Disputes Act.
From India, Delhi
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From India, Delhi
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The term DA implies a variable, and the value is determined by pegging it against an index, i.e., the Consumer Price Index for industrial workers in the case of factories. Under normal circumstances, it would be relevant only for minimum wages, wherein there is a possibility of underpayment.
In any other vocation, companies don't factor this, and compensation is pegged against market factors, e.g., external equity.
From India, Delhi
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In any other vocation, companies don't factor this, and compensation is pegged against market factors, e.g., external equity.
From India, Delhi
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Hi, I am working in a software organization. We have introduced Basic and DA since the Labor Inspector insisted on it a few years back.
As an HR professional, I have observed that many software organizations have not implemented the "DA" concept. In the meanwhile, there is Government Order (GO) No.14, dated 5-Mar-19, which provides the minimum rates of basic wages per month Zone-wise. However, it does not mention the minimum amount for "DA" or how to calculate it. I would like to know the following:
a) Is it necessary to adopt the concept of "DA"?
b) In the following link https://www.simpliance.in/minimum-wage/tamil-nadu, they have mentioned the VDA per month as Rs.3499/-. But the DA is changed by the Government from time to time. Hence, how do we, in a software organization, implement the change.
Kindly advise.
Regards,
Mythili
From India
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As an HR professional, I have observed that many software organizations have not implemented the "DA" concept. In the meanwhile, there is Government Order (GO) No.14, dated 5-Mar-19, which provides the minimum rates of basic wages per month Zone-wise. However, it does not mention the minimum amount for "DA" or how to calculate it. I would like to know the following:
a) Is it necessary to adopt the concept of "DA"?
b) In the following link https://www.simpliance.in/minimum-wage/tamil-nadu, they have mentioned the VDA per month as Rs.3499/-. But the DA is changed by the Government from time to time. Hence, how do we, in a software organization, implement the change.
Kindly advise.
Regards,
Mythili
From India
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