Kenneth Dias

Can HRA be considered a part of Minimum Wages ? If not then what are the components of Minimum wages ? There are always conflicting perceptions of this. Can anyone clarify the same ?
From India, Nuvem
Ceo-usd Hr Solutions
Kenneth Dias
Hr Consultant & Advisor


As per minimum wages definition Minimum Wages includes Basic, DA and HRA. In new Labor Codes HRA has been dropped.

In a recent award of Apex Court it observed

The Supreme Court dismissed an appeal by the Assistant Provident Fund Commissioner against an order of a division bench of the Punjab and Haryana High Court holding that when term " Basic Wages " has been described under Sec 2 (b) of the EPF Act,1952, there is no need to make reference to definition of " Minimum rate of Wages " under Sec-4 of the Minimum Wages Act.

Therefore, the prescribed minimum wages by central or state government may be bifurcated in to different pockets and obviously some allowances will come. But the gross monthly amount should not be less than Minimum wages as declared by the appropriate authority.

S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531

From India, New Delhi

Dear Friend,
The minimum wages consists of Basic + DA + VDA + HRA and have no other allowances.
The HRA component in minimum wages is very nominal, it's within 10℅ of the basic rate of wages. This is the misery of the Minimum Wages!
Those are in minimum wages can't have a rental house with that amount. The central & State Govt should look after this issue and do some fair for the working class of people covered under minimum wages rule.

From India, Mumbai
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