Can a company provides Conveyance and Medical allowance less than 800 and 1250 respectively, Example Conveyance Allowance:600 Medical allowance: 1000 Is there any problem in this? Thanks...
From India, Delhi
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From India, Delhi
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I have not come across any statute prescribing any minimum limit for HRA or conveyance allowance. In the absence of it, the contract of service shall govern the issue. Thus, unless you have contracted to pay conveyance or medical allowance at the rates mentioned above, i.e., Rs 800/- and Rs 1250/-, there should not be any problem in paying Rs. 600/- and Rs. 1000/-.
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B. Saikumar
Mumbai
From India, Mumbai
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1931Regards,
B. Saikumar
Mumbai
From India, Mumbai
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Conv. Allowance & Medical Assistance components (Rs.800/- & 1250/- p.m. respectively) are max. tax exempted components as per Income Tax rules. Not mandatory to stick to max. limit. Pon
From India, Lucknow
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From India, Lucknow
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I have mentioned in my earlier reply that I have not come across any law on HRA. It should be read as a medical allowance. So far as HRA is concerned, some states like Maharashtra have passed a law on the minimum HRA to be granted by establishments.
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B. Saikumar
Mumbai
From India, Mumbai
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Regards,
B. Saikumar
Mumbai
From India, Mumbai
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It is not less than 5% of basic + DA subject to the minimum of 20%. B.Saikumar HR &Labour Law Advisor Mumbai
From India, Mumbai
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From India, Mumbai
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Conveyance and Medical Allowance Benefits
Conveyance and Medical Allowance are benefits that can be extended by management. There is no statutory requirement for these benefits. Management may choose to offer these facilities based on their financial returns.
Regards,
D. Gurumurthy
LL.HR.IR Consultant
Hyderabad
From India, Hyderabad
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Conveyance and Medical Allowance are benefits that can be extended by management. There is no statutory requirement for these benefits. Management may choose to offer these facilities based on their financial returns.
Regards,
D. Gurumurthy
LL.HR.IR Consultant
Hyderabad
From India, Hyderabad
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ESI-Not-applica ble-on-Conveyan ce-Allowance.do c
Revision in conveyance allowance in Maharashtra from 1.10.2013.pdf