Is it compulsory to have an element of "Dearness Allowance" inbuilt in "Salary"? My company does not have it. Is it an offence?
From India, Pune
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70From India, Pune
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My dear anonymous friend,
The salary structure is never uniform; rather, it varies from company to company. Normally, the following are salary components which form parts of the CTC (cost to company):
- Basic
- Dearness allowance
- Overtime allowance
- Bonus
- City compensatory allowance (CCA)
- Conveyance allowance
- Medical allowance
- Flexible benefit plan
- Leave encashment
- Leave travel allowance
- Gratuity
- Children education or hostel allowance
- and many more likewise.
It is not necessary that "Dearness Allowance" should be an inbuilt part of the salary. The Dearness Allowance normally forms part of the salary/wages, where it is linked with the rise and fall of the consumer price index based on the cost of living of working-class people.
BS Kalsi, Member since August 2011
From India, Mumbai
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The salary structure is never uniform; rather, it varies from company to company. Normally, the following are salary components which form parts of the CTC (cost to company):
- Basic
- Dearness allowance
- Overtime allowance
- Bonus
- City compensatory allowance (CCA)
- Conveyance allowance
- Medical allowance
- Flexible benefit plan
- Leave encashment
- Leave travel allowance
- Gratuity
- Children education or hostel allowance
- and many more likewise.
It is not necessary that "Dearness Allowance" should be an inbuilt part of the salary. The Dearness Allowance normally forms part of the salary/wages, where it is linked with the rise and fall of the consumer price index based on the cost of living of working-class people.
BS Kalsi, Member since August 2011
From India, Mumbai
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Dearness Allowance.xls
SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx
The Tamil Nadu Minimum Wages Dearness Allowance Notification March 2019.pdf