Hi all,

I am working in a private limited company. In my company, we do not show DA in the salary structure. However, we pay DA for On Duty as per our company policy. So, my question is: what benefit will the employer get if DA is not included in the salary structure?

Hope you all understand my query.

From India, Mumbai

Better is to show DA in the salary structure. If, suppose, an employee raises an industrial dispute - "As per the Minimum Wages Act, Basic and DA should be paid. But the Company is paying only Basic and not paying DA." So, it will become a violation of the law. You will be forced to pay an extra amount as DA with interest.

If you show DA separately, you will have the benefit to pay gratuity to an employee only on basic pay. So, better is to divide and show the existing Basic into Basic and DA in separate columns. Make sure that this amount should be as per the minimum wages ceiling limit.

From India, Chennai

Minimum wages does not say DA has to be paid. It only says that Basic + DA should be above a specified amount. So no, the employee can not raise an industrial dispute on this ground.
From India, Mumbai

I suspect you are mixing up two completely different things that have the same abbreviation. One is Dearness Allowance, the other is Daily Allowance. They are not the same, not even close, and are for completely different purposes. Please clarify what exactly your question is.


From India, Mumbai

As my professional friend Saswata Banerjee opined above, Dearness Allowance is part of the monthly salary - it is a component. Daily Allowance is paid for those employees who go on tour or outdoor work. If you are not an HR person, please learn some basic rules and guidelines. But if you ARE an HR person, I pity your organization!

Best wishes

From India, Bengaluru

Dear Mr. Saswata Banerjee,

Not replying to the queries raised by the members is a bane of this forum. It is just a "shoot and scoot" policy that these members follow. It requires humility and courtesy to remain in touch with the respondents. But then, how many are prepared to show that?

Thanks,
Dinesh Divekar

From India, Bangalore

Unfortunately, this forum is also fast becoming a social networking site, or rather a public toilet. I regret to say this, but the fact remains the same. People simply post what they feel like, or on behalf of someone else who does not want to come out of the closet. If they get a response that is very close to the options in front of them, they accept it and vanish.
From India, Bengaluru

Dear superiors,

First, I thank all of you for spending your valuable time on my post, and I apologize for not replying to your precious opinions. As Mr. Saswata Banerjee pointed out, I mixed up those two abbreviations.

Thanks & Regards,
Sabarish S

From India, Mumbai

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