Apex Management
Labour Laws Consultants
Taxation And Hr
Kenneth Dias
Hr Consultant
Hr Officer

Apart from House Rent Allowance can all other allowances be part of minimum wages ? And if special allowance is also one of the components does it attract PF contribution?
17th July 2016 From India, Nuvem
1.Basic (minimum wages rate as per criteria & Zone)
2.Special Allowance (DA..declared by Govt.)
3.HRA ( Basic + DA ) 5%
no other component are part of minimum wages.
Pf contribution calculate on basic +DA only..
Hope its enough info.for you...
17th July 2016 From India, Kolhapur
Please note that Basic, DA & HRA are wages as defined in the payment of minimum wages act. As far as special allowance is concerned, it should be over and above to the applicable minimum wages and contribution to EPF can be claimed by the Enforcement officer if it is found unjustifiable. You have to justify the grounds of disbursement of special allowance and also the value should be reasonable.
P K Sharma
18th July 2016 From India, Delhi
Thanks for sharing views.
As mentioned by Kenneth Dias, pl. provide the details more about HRA 5%. Because as far as my knowledge, HRA is applicable in certain cases only. It is not applicable as general. for example, in Maharashtra Under the Shop & Establishment HRA 5% is applicable to the establishments who are having more than 50 employees. Like that if you provide more details about the HRA applicability would be helpful to may of us.
18th July 2016 From India, Pune
Dear all,
The minimum wages means a amount required to fulfill the need based minimum requirements of livelihood. At the time of framing the Act, housing component was assumed at 5% i.e. why certain States have capped the HRA at 5% in the minimum wages.
P K Sharma
19th July 2016 From India, Delhi
As per Maharastra workmen’s House Rent Allowance (Rent) Act 1983 Maharashtra :- 1) In Maharashtra minium HRA amount is 05% of ( Basic+DA ) 2) Maximum 50% of ( Basic+DA )
19th July 2016 From India, Kolhapur
Is there a minimum limit of 5% of the Basic wages as HRA ? I have read that the HRA is 40% of the basic in Non-Metro cities and 50% of the basic in Metro cities . Is there such a range ? And if so is it stated in any Act? Would appreciate if someone could throw some light on this.
19th July 2016 From India, Nuvem
Dear Kenneth Dias, This is a HRA exemption formula who get the HRA and pays the house rent under Income Tax Act.
20th July 2016 From India, Pune
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