There are certain States in India - Maharashtra, Gujrat and WB where are State act - House Rent Allowance Act. Minimum 5% of Basic & DA should be HRA.
As per Income Tax there is rebate available for those employees who are staying at rental accommodation and based on 3 conditions - one of them is 50% of Basic & DA for Metro City and 40% for others. This is another guide line.
Till date there is no specific guideline for % of Gross salary as Basic or other allowances. As per new wage code ( yet to be implemented ) Basic should be 50% of the total payable remuneration.
It is basically organization's strategy to finalize the remuneration structure.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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