Is there any minimum requirement as to the percentage of HRA to Basic Salary and normally what is the accepted percentage of Basic salary and all other Allowances in a salary structure ? Would appreciate some views on this.
From India, Nuvem
2From India, Nuvem
There are certain States in India - Maharashtra, Gujrat and WB where are State act - House Rent Allowance Act. Minimum 5% of Basic & DA should be HRA.
As per Income Tax there is rebate available for those employees who are staying at rental accommodation and based on 3 conditions - one of them is 50% of Basic & DA for Metro City and 40% for others. This is another guide line.
Till date there is no specific guideline for % of Gross salary as Basic or other allowances. As per new wage code ( yet to be implemented ) Basic should be 50% of the total payable remuneration.
It is basically organization's strategy to finalize the remuneration structure.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
As per Income Tax there is rebate available for those employees who are staying at rental accommodation and based on 3 conditions - one of them is 50% of Basic & DA for Metro City and 40% for others. This is another guide line.
Till date there is no specific guideline for % of Gross salary as Basic or other allowances. As per new wage code ( yet to be implemented ) Basic should be 50% of the total payable remuneration.
It is basically organization's strategy to finalize the remuneration structure.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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Delhi - Minimum Wages w.e.f. 01.10.2012 (1).pdf
Minimum Wages in Maharashtra for the period January 2018 to June 2018.xls