Should Your HRA Be Tied to Attendance? Exploring Different Company Policies

Should HRA Depend on Employees' Attendance?

This is a highly disputed question. In many companies, HRA depends on attendance, while in many others, it doesn't. Please let me know if you need further assistance.

[QUOTE=jaiswal_garima;1436611] Hi Friends, Should HRA depend on employees' attendance? This is a highly disputed question. In many companies, HRA depends on attendance, while in many others, it doesn't. Can anyone tell me the reason for this?

Thank you.

HRA Policy Based on Employee Attendance: A Critical View

If a company adopts the policy of HRA based on employee attendance, it may be following the policy of "Penny wise, Pound Foolish!"

Pertinent questions arise:
- Is the company not accumulating employees' dissatisfaction, resulting in retardation or loss of productivity by deducting pennies from the employee's salary?
- Does the employee stop making payment of rent for his living accommodation when he does not attend work?

There is no logic in affecting HRA based on the attendance of an employee, except when they are on leave for a very long duration or are on unauthorized absence.

Regards,
PS Dhingra
Chief Executive Officer
Dhingra Group of Management & Vigilance Consultants
New Delhi-110089
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