Labour Laws & Ir
Gm (hr)
Sunil K K
Employee Payroll & Taxation
+1 Other

Hi Seniors, Pls let me know that if any act says about the minimum percentage / amount of HRA requirement while defining the salary structure. Normally Co.'s decide the 40%, 50% or 60% of Basic Salary.
Pls provide me the details for Gurgaon / Maharashtra Minimum wages act.
Thanks for your help
Best Regards,
Sunil Kumar

From India, New Delhi
Maharashtra :- 1) In Maharashtra minium HRA amount is 05% of ( Basic+DA ) 2) Maximum 50% of ( Basic+DA ) is tax exempted in Mumbai 3) Maximum 40% of ( Basic+DA ) is tax exempted in other than Mumbai
From India, Pune
there is no law as such which states how much % of basic should be HRA
.while structuring salary we take income tax point of view in consideration.40% generally we give HRA for non metros and 50% HRA we give for metro cities.
j s malik

From India, Delhi
Dear Sunil Kumar,
It is hereby informed that there happened to be no Act in the name of Gurgaon/ Maharashtra Minimum Wages Act. The Minimum Wages Act,1948 is the central Act.State Governments notify their minimum rates of wages for whole of the State or for different Zones. The Haryana Govt. have declared / notified the minimum rates wages for employees working in different schedule employments all inclusive per month & for daily wagers under section 4(iii) of Minimum Wages Act,1948 which do not have any separate component of HRA.These rates are linked with the Consumer Price Index number.These rates are declared for through out the state.

Skylark Associates, Gurgaon(Haryana)
(Labour Law & Legal Consultants)

From India, Delhi
Thanks all :icon1:
Got the answer of my question and searched on net also.
Yes, In Haryana, there is no such act says about the minimum % of HRA but in Maharashtra, minimum % i.e. 5% is defined by the Maharashtra Workmen's Minimum House Rent Allowance Act 1983
Best Regards,
Sunil Kumar

From India, New Delhi
Dear, Kindly tell us wheather minimum wages in maharashtra includes HRA or not? please send us a clause stating so. Regards, Sandeep
From India, Mumbai
I think the thread starter has meant the employees who are falling under income tax net. The employees who are paid under Min. wages Act may not be covered under Income Tax slabs, hence no need of HRA to be specified separately.
For the Tax payers, HRA is 50% in metros and 40% in non-metros to reduce their tax burden.

From India, Lucknow
Hello, What would be the salary structure in Madhya Pradesh with all new/old legal compliance deductions. regards, Divyesh
From India, Indore
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