Please tell me if I have been told that I will be given a ₹30,000 consolidated salary. What deductions will be made from this amount? Also, does it include HRA, medical allowance, and convenience allowance?
Is it possible for a company not to pay HRA to an employee?
From India, New Delhi
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Is it possible for a company not to pay HRA to an employee?
From India, New Delhi
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Mr. Kalra,
It is the employer's privilege to structure the salary of employees. Thus, all those allowances, as Mr. Pon said, form part of the salary. However, HRA may be mandatory if there is a state Act making it compulsory to pay; otherwise, it is not mandatory. As far as deductions are concerned, all statutory contributions like EPF, ESI, Labour Fund, professional Tax, TDS (if you are coming under the tax net), loan installments, if any, are compulsory. You can also authorize certain deductions like insurance premiums, etc.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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1931It is the employer's privilege to structure the salary of employees. Thus, all those allowances, as Mr. Pon said, form part of the salary. However, HRA may be mandatory if there is a state Act making it compulsory to pay; otherwise, it is not mandatory. As far as deductions are concerned, all statutory contributions like EPF, ESI, Labour Fund, professional Tax, TDS (if you are coming under the tax net), loan installments, if any, are compulsory. You can also authorize certain deductions like insurance premiums, etc.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Salary & allowances.doc