Dearness allowance and its calculation
Senthil K Nallasamy
(Querist) 06 April 2016
This query is : Resolved
For example, our Private Sector company was giving Basic (Rs. 3000) and DA (Rs. 3000) to the employee and there were only two components. We were paying the PF for the combined amount (BAsic + DA).
Now, in this financial year, I would like to revise this structure.
1. Is it possible to take away the DA completely and call it Special allowance? This means that my PF amount will be lowered. Is this accepted by law?
2. Is there a minimum hike year on year to the Basic as well as DA anywhere stipulated by Factories act or any other law?
3. For the new employees joining, can I get rid of DA? This means that the current and new employees will be on different structure. Is this fine?
Kumar Doab
(Expert) 06 April 2016
Hope you shall take it positively.
The corporate can engage the services of a Labor Law Consultant.
Another advantage is that the employee that is being asked to wet shall get a legal opinion, and shall not be held responsible later.
Rajendra K Goyal
(Expert) 07 April 2016
Consult local labor law consultant, Company can afford consultation.
