b.sreenivasa Rao (Legal Services) 15 May 2010

can we show DA and fixed DA as two components in the same st

Can we show DA and fixed DA as two components in the same structure?

I have a recently seen a payslip of one of the manufacturing units in hyderabad, its a pay slip of a worker catogry person. Designationed as Mechanical Operator.

his Payslip Shows following components:

Basic Pay

DA

Fixed DA

Rationalization aloowance.............

My doubts are as follows...............

1) can we show DA and fixed DA as two components in the same structure???

2) According to Minimum wages ACt an operator comes under skilled catogery. and his basic + DA as specified in Act is 5375+1075. But the company is trying to protect this minimum wages as Basic+ DA+ Fixed DA. is it a correct process According to law???

3) here employes basic constitutes of very nominal persentage of aprx.15 % of gross salary. and DA is even less than Rs.500 but they are showing rest of the Minimum basics in Fixed DA.

4) lastly wnat to know what is that rationalization allowance???

Regards

Sreenivasa rao

Reply Follow

1 Replies

radha krishna (vp-hr) 15 May 2010

1. DA & Fixed DA can be shown as two different components.

2. Basic,DA,Fixed DA attracts all the indirect benefits (PF/Gratuity/Bonus etc.,).As long as the total amount of wage given by an employer is equalent to the Minimum Wage declared by Government, it can be devided into any number of components. However the indirect benefits also whould not be less that what he would have gor if the wage as presecribed Gvoernment is paid.

3. As per you, the amount is shown in Fixed DA, which is ok.

4.There moght be an agreement with union/understanding with workers about rationalisation and die to workload accepted after rationalisation-this arationaliation allowance.