Wages Breakup - cardboard box manufacturing company in Maharashtra

Hello Sir, I work for cardboard box manufacturing company in Maharashtra
Should I add HRA in wages? Along with minimum wages + DA
Please explain the terms of wages and breakup

Hra is an allowance that an employee is entitled for if no accomodation is provided from the employer side, Hence As per the class of city the appropriate rate of HRA needs to be included in wages.

Usaully Wage Break up to arrive at ctc calculation Would be -
1) Basic
2DA/ Spl allowance
3) Conveyance allowance
4) Maintenance/ washing allowance
5) Any other allownce which is regularly applicable
6) EPF
7) ESIC
8)MLWF
9)Leave with wages ( Earned Leave)
10) National Holidays/ other paid holidays
11)Gratuity
12)Any other Fringe benifit.

If you pay HRA to all employees then that payment shall be taken as a component of salary and include in the salary to decide whether the company is complying with the requirements of minimum wages notification. Simply, the total salary should be taken and there is no need to see if any particular component payable as per minimum wages notification is paid or not. In many case, companies do not pay DA (special allowance in Maharashtra) but may pay basic salary and HRA or some other way, and in such cases, if your total wages is equal to or more than the prescribed Basic and DA, then you are said to comply with the legal requirement and there is no need to pay DA separately.

Labor is in concurrent list. Therefore, States has also right to frame act for labor. House Rent Allowance Act is a State Act applicable in some States in India - WB, Maharashtra etc. which is 5% of Basic & DA.

As in Maharashtra HRA is Act, to my opinion Minimum wages ( Basic +DA) and HRA is State Act, therefore other than Basic and DA as per minimum wages, HRA will also be required to Pay which is probably 5% of Basic & HRA.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
98310 81531
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.............. which is probably 5% of Basic & DA not HRA.(last line of my above post)

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
98310 81531
[Login to view]
USD HR Solutions – To Strive towards excellence with effort and integrity

Dear colleague,

In Maharashtra, Minimum wages Act and House Rent Allowance Act are applicable and are in force. If your industry falls within the scheduled employments of the MW Act then paying Basic Wages and Special Allowance (DA) as determined for your industry is your statutory obligation. In addition, HRA too is obligatory to pay at 5% of the Basic and D.A. Thus your wage components must include Basic+DA+HRA. to comply with the law.

Regards,

Vinayak Nagarkar
HR and Employee Relations Consultant

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