Respected All,
We have join new organisation. but where we find Basic & DA of semiskill employee was not proper, In Uttar Pradesh Basic & DA of semiskill employees should be 2964.00 Rs & 880.00 Rs, but there employer are giving Basic 3100.00 Rs. & DA 2050 Rs., which are more then from government standard.
so plz guide me how I will Manage it, because in every six month (April & October) government increase DA, then how I will increase his DA amount because already it is more than from standard.
and we have also dicuss some persons about this case, then he suggest me that you don;t increase his DA amount, when DA will come in government standard then you start increase with six month rotation.
we can;t change Basic & DA amount, and adjest Balance amount in other component, because it is from last one year.
Regards
Shekhar Srivastava
Sr. Executive - HR (genernal & admin)
From India, Lucknow
10We have join new organisation. but where we find Basic & DA of semiskill employee was not proper, In Uttar Pradesh Basic & DA of semiskill employees should be 2964.00 Rs & 880.00 Rs, but there employer are giving Basic 3100.00 Rs. & DA 2050 Rs., which are more then from government standard.
so plz guide me how I will Manage it, because in every six month (April & October) government increase DA, then how I will increase his DA amount because already it is more than from standard.
and we have also dicuss some persons about this case, then he suggest me that you don;t increase his DA amount, when DA will come in government standard then you start increase with six month rotation.
we can;t change Basic & DA amount, and adjest Balance amount in other component, because it is from last one year.
Regards
Shekhar Srivastava
Sr. Executive - HR (genernal & admin)
From India, Lucknow
Dear Friend,
Concentrate on minimum wages. Wages should not be less than prescribed minimum basic wages by govt. but it doesn’t mean that you will not pay more than that. So don’t worry and pay whatever you want but not less than minimum basic wages.
Regards
Pankaj Chandan
From India, New delhi
Concentrate on minimum wages. Wages should not be less than prescribed minimum basic wages by govt. but it doesn’t mean that you will not pay more than that. So don’t worry and pay whatever you want but not less than minimum basic wages.
Regards
Pankaj Chandan
From India, New delhi
dear
you have to take legal and IR aspect both in to consideration.
legally you are not required to pay any DA declared by UP govt after every six month as you are already paying more than minimum wages.i understand your problem there was no experienced person and bifurcation was done worngly.if you want to increase salary of your worker donot increase DA put in another head like HRA or conveyance.
please take care of IR part also.
regards
js malik
From India, Delhi
you have to take legal and IR aspect both in to consideration.
legally you are not required to pay any DA declared by UP govt after every six month as you are already paying more than minimum wages.i understand your problem there was no experienced person and bifurcation was done worngly.if you want to increase salary of your worker donot increase DA put in another head like HRA or conveyance.
please take care of IR part also.
regards
js malik
From India, Delhi
I agreed with Mr.malikjs. But I would like to add here that nothing harms if you pay more than minimum wages because of market rates in local area may be more than State Govt Rates.
If you reduce or break them into another allowances that should not creat misunderstanding among workmen as their wages have been reduced.
You either wait until DA is reach at par to current level DA paid by company or if you find that market rates in your area are already higher than State Govt Minimum Wages then you stick to this system because some times Representative Union in local area takes initiatives to fix rates as agreement and same rates are followed by other industries in that local areas then if you side track this main stream you will create IR crises.
Be carerful just enquire nearby industries identical to your nature of Industry for what wages they pay and is there any agreement with Employers Association something like that must be clarified first.
You are new, so you must know the past history of this case how this has arrived then you can build your case to amend present system.
Partho
From Saudi Arabia
If you reduce or break them into another allowances that should not creat misunderstanding among workmen as their wages have been reduced.
You either wait until DA is reach at par to current level DA paid by company or if you find that market rates in your area are already higher than State Govt Minimum Wages then you stick to this system because some times Representative Union in local area takes initiatives to fix rates as agreement and same rates are followed by other industries in that local areas then if you side track this main stream you will create IR crises.
Be carerful just enquire nearby industries identical to your nature of Industry for what wages they pay and is there any agreement with Employers Association something like that must be clarified first.
You are new, so you must know the past history of this case how this has arrived then you can build your case to amend present system.
Partho
From Saudi Arabia
more over you cannot revise the basic & da now as for PF contb the same cannot be less than what is given at present. so just relax do not worry as what you are paying is already more. As far as basic is concerned keep a check on that and increase accordingly so that it dosent affect the min wages when it increase and da offcourse what you are giving at present in too high. so nothing to be worried.
sk
From India, Delhi
sk
From India, Delhi
Dear Shekhar,
It is rightly pointed that since you pay more than the minimum wages you need not worry about DA cahnge every six month. However you keep a track on the changes and only when the DA increases more than what you pay it needs to be looked in to.
It is company policy to decide what should be the basic salary and what should be the base. Now some one has already done it and you can not reduce the basic as it effects the PF and other factors. Employees will not accept it and if your company is labour oriented than it will cause you lot of problem. It is very very sensitive, please do not think of reducing basic or DA now. If you reduce basic and DA it will effect PF and Gratuity factors which are the retirement benifits.
At the time of increment try to revise the salary structure within the law. you can give HRA more than 5% of Basic, also you can add medical or conveyance allwance etc.. Pl study it throghly before implementing such things. It should be balanced act. Neither company looses nor Employee...after all we are also employee. Keep youeself in that situation and ask a question "if your basic and DA are reduce will you accept it as because of this your PF savings will be less etc....."
If your company takes care of people, you should get proactive and form good people oriented policies as very few companies do that.
Regards.
Kamlesh Kanojia
From India, Mumbai
It is rightly pointed that since you pay more than the minimum wages you need not worry about DA cahnge every six month. However you keep a track on the changes and only when the DA increases more than what you pay it needs to be looked in to.
It is company policy to decide what should be the basic salary and what should be the base. Now some one has already done it and you can not reduce the basic as it effects the PF and other factors. Employees will not accept it and if your company is labour oriented than it will cause you lot of problem. It is very very sensitive, please do not think of reducing basic or DA now. If you reduce basic and DA it will effect PF and Gratuity factors which are the retirement benifits.
At the time of increment try to revise the salary structure within the law. you can give HRA more than 5% of Basic, also you can add medical or conveyance allwance etc.. Pl study it throghly before implementing such things. It should be balanced act. Neither company looses nor Employee...after all we are also employee. Keep youeself in that situation and ask a question "if your basic and DA are reduce will you accept it as because of this your PF savings will be less etc....."
If your company takes care of people, you should get proactive and form good people oriented policies as very few companies do that.
Regards.
Kamlesh Kanojia
From India, Mumbai
If you are paying more than minimum wages than their is no point of giving DA. In April & October when Government declares the rise you adjust in HRA , Conveyance heads. Regards Abhijeet Sawant
From India, Ahmadabad
From India, Ahmadabad
As per govt norms DA is change after every six month. So if you want to apply the same policy then you can apply it proportinatly as per govt norms. You can also adopt the same policy.
Otherwise if you want to increase the salary of employee give other benifits like HRA, Conveyance, CCA
From India, Chandrapur
Otherwise if you want to increase the salary of employee give other benifits like HRA, Conveyance, CCA
From India, Chandrapur
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EPFO_Notificati on for Online Basic Information Change.pdf
Minimum Wages Basic-DA.xls