Hello Sir, I work for cardboard box manufacturing company in Maharashtra Should I add HRA in wages? Along with minimum wages + DA Please explain the terms of wages and breakup
From India, Pune
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1From India, Pune
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Hra is an allowance that an employee is entitled for if no accomodation is provided from the employer side, Hence As per the class of city the appropriate rate of HRA needs to be included in wages.
From India, Vadodara
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From India, Vadodara
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Wage Breakdown for Calculating Cost to Company (CTC)
Usually, the wage breakdown for calculating the Cost to Company (CTC) would be as follows:
1) Basic
2) DA/Special Allowance
3) Conveyance Allowance
4) Maintenance/Washing Allowance
5) Any other allowance that is regularly applicable
6) EPF
7) ESIC
8) MLWF
9) Leave with Wages (Earned Leave)
10) National Holidays/Other Paid Holidays
11) Gratuity
12) Any other fringe benefit.
Please let me know if you need further clarification or assistance.
From India, Vadodara
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Usually, the wage breakdown for calculating the Cost to Company (CTC) would be as follows:
1) Basic
2) DA/Special Allowance
3) Conveyance Allowance
4) Maintenance/Washing Allowance
5) Any other allowance that is regularly applicable
6) EPF
7) ESIC
8) MLWF
9) Leave with Wages (Earned Leave)
10) National Holidays/Other Paid Holidays
11) Gratuity
12) Any other fringe benefit.
Please let me know if you need further clarification or assistance.
From India, Vadodara
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Understanding HRA and Minimum Wages Compliance
If you pay HRA to all employees, then that payment shall be taken as a component of salary and included in the salary to decide whether the company is complying with the requirements of the minimum wages notification. Simply put, the total salary should be considered, and there is no need to check if any particular component payable as per the minimum wages notification is paid or not.
In many cases, companies do not pay DA (special allowance in Maharashtra) but may pay basic salary and HRA or some other way. In such cases, if your total wages are equal to or more than the prescribed Basic and DA, then you are considered to comply with the legal requirement, and there is no need to pay DA separately.
From India, Kannur
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If you pay HRA to all employees, then that payment shall be taken as a component of salary and included in the salary to decide whether the company is complying with the requirements of the minimum wages notification. Simply put, the total salary should be considered, and there is no need to check if any particular component payable as per the minimum wages notification is paid or not.
In many cases, companies do not pay DA (special allowance in Maharashtra) but may pay basic salary and HRA or some other way. In such cases, if your total wages are equal to or more than the prescribed Basic and DA, then you are considered to comply with the legal requirement, and there is no need to pay DA separately.
From India, Kannur
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Labor Laws and House Rent Allowance (HRA) in India
Labor is in the concurrent list. Therefore, states also have the right to frame acts for labor. The House Rent Allowance Act is a state act applicable in some states in India, such as West Bengal and Maharashtra, which is 5% of Basic & DA.
HRA as a State Act in Maharashtra
In Maharashtra, HRA is an act. In my opinion, minimum wages (Basic + DA) and HRA are state acts. Therefore, in addition to Basic and DA as per minimum wages, HRA will also be required to be paid, which is likely 5% of Basic & HRA.
Regards
From India, New Delhi
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Labor is in the concurrent list. Therefore, states also have the right to frame acts for labor. The House Rent Allowance Act is a state act applicable in some states in India, such as West Bengal and Maharashtra, which is 5% of Basic & DA.
HRA as a State Act in Maharashtra
In Maharashtra, HRA is an act. In my opinion, minimum wages (Basic + DA) and HRA are state acts. Therefore, in addition to Basic and DA as per minimum wages, HRA will also be required to be paid, which is likely 5% of Basic & HRA.
Regards
From India, New Delhi
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In Maharashtra, the Minimum Wages Act and the House Rent Allowance Act are applicable and in force. If your industry falls within the scheduled employments of the MW Act, then paying Basic Wages and Special Allowance (DA) as determined for your industry is your statutory obligation. Additionally, HRA is also obligatory to pay at 5% of the Basic and D.A. Thus, your wage components must include Basic + DA + HRA to comply with the law.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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Minimum wages breakup.xls
Delhi Minimum Wages w.e.f. 01.10.2015.pdf