Understanding HRA Calculation: Does Absence Affect Full Month Allowance?

Good morning to all. I have a question about a scenario where a permanent staff member's monthly gross salary is 26,994/-. The House Rent Allowance (HRA) for this individual is 1,960/-, which is 40% of the basic salary.

For instance, if the staff member is present for the entire month of October 2022, they will receive the full HRA of 1,960/-. However, if they are absent for two days in November 2022, how will the HRA be calculated?

My question is, will the HRA be calculated for the full month regardless of the number of absent days? For example, if the staff member is present for only two days in November 2022, will they still receive the HRA for the entire month?

If the HRA is part of the salary and is available to all employees, irrespective of their residential status, then it will be reduced proportionately. At the same time, if the HRA is paid separately and over and above the salary, it should be paid even if you have been on leave for a few days. In most private establishments, it is usually part of the salary and is structured to avoid certain statutory contributions like PF, Bonus, Gratuity, etc.