Please Help, Regarding HRA - CiteHR
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Hi friends
Our company have union agreement that says HRA should be 15% on Basic wages.So we consider only Basic and not Dearness allowance for
HRA calculation purpose.
According to the Acts HRA Should on Basic and D A together.
Please give your comments ,as i am preparing salary.
Your comments would be great help .
Pratap Kamble

Hi Pratap,
DA is usually part of the salary structure in companies having lot of blue collar workers or old companies where salaries are raised with the rise in DA. Most of the modern & structured companies dont have DA. They just have a salary head called Basic. You can calcualte HRA as a percentage of basic only.

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