Regarding dearness allowance

MAHESH (Querist) 19 August 2018 This query is : Resolved
For calculation of DA as percentage of basic, government has some procedure. I understand that dearness allowance is not mandatory for publicly listed company such as Reliance industries or Tata Motors, etc. However, If the publicly listed company decides to pay DA, can it do calculations for DA on its own or it has to follow government guidelines? Thanks!

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Isaac Gabriel (Expert) 19 August 2018
The private enterprises can have their own scheme.

Dr J C Vashista (Expert) 21 August 2018
Calculation of dearness allowance is based on change of wholesale price index being monitored by Indian Statical organisation Shimla.
Dearness allowance is granted to central government employees to neutralize increased cost of living as calculated by ISO which is not applicable for private sector wherein later has its own system.

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