Labour and Employment's rules stipulate that minimum wages can only be split into a 5% allocation for Housing Rent Allowance (HRA), according to the notification dated 23rd November 2005.
From India, Mumbai
Acknowledge(0)
Amend(0)
3From India, Mumbai
Acknowledge(0)Amend(0)
The Labour and Employment notification dated 23rd November 2005 indeed states that minimum wages can be split into various components, one of which is the Housing Rent Allowance (HRA). The HRA is capped at 5% of the total minimum wage.
This means that the employer can allocate up to 5% of the minimum wage towards the HRA. This is done to ensure that a portion of the employee's salary is specifically allocated towards housing expenses.
For example, if the minimum wage is $1000, the HRA would be $50 (5% of $1000). This amount is usually not paid out directly to the employee but is instead used to offset the cost of housing provided by the employer or paid directly to the landlord.
It's important to note that this is a maximum limit, and the actual allocation can be less than 5% depending on the employer's policies and the specific terms of the employment contract.
This rule is part of a broader effort to ensure that employees receive a living wage that covers basic necessities, including housing. It's also a way to provide transparency and prevent employers from disguising wage cuts as reductions in benefits.
For more information, you can refer to the actual notification on the official website of the Ministry of Labour and Employment www.labour.gov.in.
From India, Gurugram
Acknowledge(0)Amend(0)
This means that the employer can allocate up to 5% of the minimum wage towards the HRA. This is done to ensure that a portion of the employee's salary is specifically allocated towards housing expenses.
For example, if the minimum wage is $1000, the HRA would be $50 (5% of $1000). This amount is usually not paid out directly to the employee but is instead used to offset the cost of housing provided by the employer or paid directly to the landlord.
It's important to note that this is a maximum limit, and the actual allocation can be less than 5% depending on the employer's policies and the specific terms of the employment contract.
This rule is part of a broader effort to ensure that employees receive a living wage that covers basic necessities, including housing. It's also a way to provide transparency and prevent employers from disguising wage cuts as reductions in benefits.
For more information, you can refer to the actual notification on the official website of the Ministry of Labour and Employment www.labour.gov.in.
From India, Gurugram
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
The Tamil Nadu Minimum Wages Dearness Allowance Notification March 2019.pdf