Our Company is based at Mumbai. We do not have Dearness Allowance in our Compensation structure but we have Special Allowance salary components. Are Dearness Allowance and Special Allowance same for Maharashtra state? Do we need to calculate the PF, Gratuity on the basis of Basic salary % or Basic+Special Allowance %?
From India, Pune
Special allowance is not dearness allowance. If your company doesnt have dearness allowance as a component, then you need to calculate PF only on Basic wages.
From India, Chennai
If you see the minimum wages notification for Maharashtra you will see that the state government is providing basic and special allowance as the components of wages. So it is possible that the labour officer and the courts would consider it as a part of DA
one safe way would be to meet the PRO of the PF department and get a written clarification. Of course the department is likely to tell you to pay it on the entire wage.

From India, Mumbai
In Maharashtra, DA is called the Special Allowance under minimum wages act. Special Allowance is revised in Jan & July.
From India, Pune
Dear Friend , I am also with Kprasson .For all purpose we include Basic & Spl Allow than why not ,as it termed different ways,as it is link with current situation in Market . Regards
From India, Mumbai
hello all,
If Special allowance is equivalent to DA in maharashtra, then the pf contribution will be Basic+special allowance. So in this case do we have to pay the revised pf contribution from the DOJ (back dated) or can we start from this month onwards.
please clarify
regards
sumita Mehta

From India, New Delhi
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