Is HRA is compulsory in Maharashtra - As in Minimum wages act it is mentioned that HRA is part of Basic salary

Disha Kulkarni
Dear sir, We are located in Aurangabad Maharashtra & We are paying wages according to Minimum wages act 1948. My question is whether we needed to pay the HRA. As in Minimum wages act it is mentioned that HRA is part of Basic salary. Please guide us.
shobhit-kumar-mittal
Disha,
If the total wages being paid by your company are more than minimum rate of wages, then you need not to pay HRA as a separate component. It is not mandatory under Minimum Wages Act 1948. There is a judgment of Hon'ble Supreme Court on this point.
For further clarification you may contact :-
- Shobhit Kumar Mittal
Industrial & Labour Law Advisor
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8077779793, 9319956443
umakanthan53
Dear Disha,
I would request you to go through the Maharashtra Workmen's Minimum House Rent Allowance Act,1983 and ascertain whether your establishment comes under the purview of the said Act.
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