SHREYAS GUPTA
6

Dear All, Geetings for the day!!! We are a new startup under Shops and Commercial establishments. Is it manditory to pay DA as pay structure component? Please let me know. Kind Regards Shreyas
From India, Bangalore
ravi5554
427

HI, DA is nothing but Dearness Allowance and its not compulsory in salary strucher.
From India, Mumbai
ravi5554
427

Hi, its not necessary...while you are offering salary keep in mind it not less than Minimum Wages(including Basic+Spl.Allowance)
From India, Mumbai
saswatabanerjee
2395

Yes, you can exclude it.
However, in that case, you need to ensure that the basic of the employee is higher than Basic + Da mentioned in the minimum wages notification currently applicable (and keep revising if it gets below the limit)

From India, Mumbai
D.GURUMURTHY
107

In case your establishment is covered under minimum wages act, you have to pay minimum wages stipulated.
That minimum wages payable per month can be bifurcated as Basic and other allowances as per the company policy. or
You can pay lump sum amount as wages. it should not be less than the minimum wages.

From India, Hyderabad
krishnamurthypm
2

Dear Members, not an compulsory component to pay as per Shops & Est act, but in case if you are a contractor employer, then at the time of auditing the audit will be questioned.
From India, Chennai
sumitk.saxena
252

Dearness allowance is the componant of salary & wages under payement of wages & minimum wages act. It can be ommited but you have merged the same with the basic salary.
thanks & regards,
From,
Sumit Kumar Saxena

From India, Ghaziabad
annu000sharma
Under the minimum wages act the basic salary is combination of Basic+D.A. if the basic salary is higher than minimum wages than it is not mandatory to show D.A. in salary Structure.
From India, Jaipur
atul.mystery
40

Dear All,
As you all said that Basic+DA which is we call basic exactly. then why DA is not compulsory. what is the reason of this. anyone please elaborate it for a general knowledge point of view. Also if possible please share some views on minimum salary wages. on what criteria it has been set??

From India, Gurgaon
rkn61
625

Information pertaining to minimum wages applicable to various industries, can be had from the information &
statistics section of the Labour Department (Office of the District Labour Officer) in your State/District.
As regards Dearness allowance, companies adopt various methods. Some companies split up Dearness allowance
as FDA (Fixed DA)- a certain percentage of basic salary and Variable DA (VDA)- which is arrived at on the basis of
Consumer Price index numbers received from Labour Bureau, Shimla.
Whether you have Dearness allowance component or not, the total emoluments should be greater than or equal to
the minimum wages declared by the authority applicable to your industry in your State- this is to be borne in mind.
Thanks
R K Nair

From India, Aizawl
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