Minimum Requirement for HRA to Basic Salary
Is there any minimum requirement as to the percentage of HRA to Basic Salary? Also, what is the normally accepted percentage of Basic Salary and all other allowances in a salary structure? I would appreciate some views on this.
From India, Nuvem
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2Is there any minimum requirement as to the percentage of HRA to Basic Salary? Also, what is the normally accepted percentage of Basic Salary and all other allowances in a salary structure? I would appreciate some views on this.
From India, Nuvem
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House Rent Allowance Act in India
There are certain states in India—Maharashtra, Gujarat, and West Bengal—where the State Act, the House Rent Allowance Act, is applicable. A minimum of 5% of Basic & DA should be allocated as HRA.
Income Tax Regulations on HRA
According to the Income Tax regulations, there is a rebate available for employees residing in rental accommodations based on three conditions—one of which specifies 50% of Basic & DA for Metro Cities and 40% for others. This serves as another guideline.
Guidelines on Salary Structure
To date, there is no specific guideline for the percentage of Gross salary allocated as Basic or other allowances. As per the new wage code (yet to be implemented), Basic should constitute 50% of the total payable remuneration. The determination of the remuneration structure is essentially the organization's strategy.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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There are certain states in India—Maharashtra, Gujarat, and West Bengal—where the State Act, the House Rent Allowance Act, is applicable. A minimum of 5% of Basic & DA should be allocated as HRA.
Income Tax Regulations on HRA
According to the Income Tax regulations, there is a rebate available for employees residing in rental accommodations based on three conditions—one of which specifies 50% of Basic & DA for Metro Cities and 40% for others. This serves as another guideline.
Guidelines on Salary Structure
To date, there is no specific guideline for the percentage of Gross salary allocated as Basic or other allowances. As per the new wage code (yet to be implemented), Basic should constitute 50% of the total payable remuneration. The determination of the remuneration structure is essentially the organization's strategy.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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Creating a Competitive Salary Structure.doc
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