Hi Santosh,
. For specific legal advice regarding your situation, it's recommended to consult with a labour attorney or legal expert in your jurisdiction.
In India, both central and state governments can set minimum wages, and employers are required to comply with the higher of the two rates (central or state). In Mumbai, Maharashtra, the state government sets its own minimum wages.
Regarding HRA (House Rent Allowance), this is typically provided to employees to help them meet the cost of accommodation, and it's a common component of a compensation package. While the central government may set certain guidelines, it's important to note that state governments may have their own regulations regarding HRA.
In your case, if your employees are working in Mumbai, Maharashtra, and the state government's minimum wage includes a provision for HRA, it is generally expected that this should be followed. The central government's guidelines are meant to be a minimum standard, and employers are expected to adhere to the higher of the two standards (central or state).
If your client is denying HRA based on following central wages, and Maharashtra's HRA is applicable, this could potentially be in violation of the state's labour laws. It would be advisable to consult with a labour lawyer or legal expert in Maharashtra to get specific advice about your situation.
It's important to ensure that you are in compliance with all relevant labour laws and regulations to protect both your company and your employees.
Thanks