Minimum Wages Confusion: Is HRA Included or Not? Can Anyone Clarify?

Can HRA be considered a part of Minimum Wages?

Can HRA be considered a part of Minimum Wages? If not, then what are the components of Minimum wages? There are always conflicting perceptions of this. Can anyone clarify the same?

As per the definition of minimum wages, it includes Basic, DA, and HRA. In the new Labor Codes, HRA has been dropped.

Recent Supreme Court Decision on Basic Wages

In a recent decision by the Apex Court, it was observed that the Supreme Court dismissed an appeal by the Assistant Provident Fund Commissioner against an order of a division bench of the Punjab and Haryana High Court. The High Court held that when the term "Basic Wages" is described under Sec 2 (b) of the EPF Act, 1952, there is no need to refer to the definition of "Minimum rate of Wages" under Sec-4 of the Minimum Wages Act.

Components of Minimum Wages

Therefore, the minimum wages prescribed by the central or state government may be divided into different components, and some allowances will naturally be included. However, the total monthly amount should not be less than the minimum wages declared by the appropriate authority.

Regards, S K Bandyopadhyay

Dear Friend,

The minimum wages consist of Basic + DA + VDA + HRA and have no other allowances. The HRA component in minimum wages is very nominal; it's within 10% of the basic rate of wages. This is the misery of the Minimum Wages!

Those on minimum wages can't afford a rental house with that amount. The central and state governments should look into this issue and make some fair adjustments for the working class of people covered under the minimum wages rule.