Is D.A compulsory under the Tamil Nadu Minimum Wages Act and rules?
The labor inspector advised us that we have to pay D.A to our employees. We are giving more than 15K in salary to all our employees. We are providing only Basic + HRA.
From India, New Delhi
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115The labor inspector advised us that we have to pay D.A to our employees. We are giving more than 15K in salary to all our employees. We are providing only Basic + HRA.
From India, New Delhi
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It is not compulsory. Minimum wage inspectors should consider whether the gross wages are higher than the minimum wage or not. He might be asking these questions to confuse you. Stay firm. You can split the current basic wage into basic + DA to prevent future issues.
From India, Chennai
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From India, Chennai
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Dear friend,
Please find attached a copy of the Supreme Court judgment in Airfreight Ltd v State of Karnataka & ors. It has been clearly and categorically mentioned that when the employer pays gross wages exceeding the minimum wages, there is no need to pay DA separately. However, the Supreme Court in the judgment stated that such wages should be in accordance with Section 2(h) of the Minimum Wages Act 1948. Since Section 2(h) of the MW Act defines "wages" to include HRA (copy enclosed), we may pay MW - comprising of Basic, DA, and HRA, with the remaining as other allowances. If you require any further details, documents, or assistance, please contact us.
Regards,
N. Nataraajhan
Sakthi Management Services
HP: +91 94835 17402
Email: natraj@sakthimanagement.com
From India, Bangalore
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Please find attached a copy of the Supreme Court judgment in Airfreight Ltd v State of Karnataka & ors. It has been clearly and categorically mentioned that when the employer pays gross wages exceeding the minimum wages, there is no need to pay DA separately. However, the Supreme Court in the judgment stated that such wages should be in accordance with Section 2(h) of the Minimum Wages Act 1948. Since Section 2(h) of the MW Act defines "wages" to include HRA (copy enclosed), we may pay MW - comprising of Basic, DA, and HRA, with the remaining as other allowances. If you require any further details, documents, or assistance, please contact us.
Regards,
N. Nataraajhan
Sakthi Management Services
HP: +91 94835 17402
Email: natraj@sakthimanagement.com
From India, Bangalore
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If you are paying Basic Wage to your employees more than what the minimum wages are prescribing (basic + DA), then you are complying with the Minimum Wages Act. Even if you are paying all components of wages together and it is more than the minimum wages, then you are complying with minimum wages regulations. Ensure that the basic wage should be more than 60% of the total wages.
Regards,
Mahesh
From India, Hyderabad
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Regards,
Mahesh
From India, Hyderabad
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