Principal Hr Consultant
Prashant B Ingawale
PRABHAT RANJAN MOHANTY
Hr & Ir
In all these cases better provide him extra allowance/ salary head rather giving more HRA which is very cumbersome to reduce if employee transferred to other location having low cost of living
20th November 2017 From India, Pune
20th November 2017 From India, Hyderabad
Your question raiese another question, are you from HR?
You are paying higher HRA on the basis of location of the posting. When such employee proceeds on leave and visits his home town where HRA is comparatively lower, you can not reduce the HRA.
You can only reduce the HRA if he is transferred to another location having low HRA.
To be judicious you can not reduce if place of posting has not changed. The thought also is not justified.
21st November 2017 From India, Thane
You are in pool of doubts and clarity. You ask something, when answered you come with another. The HRA granted in higher rate is to compensate the market rate of that area. You need not worry whether the employee stays with whom and why and You did not give an additional favour to employee rather, is his rights.
22nd November 2017 From India, Mumbai