Dear friends,
Let me share my views on this thread as follows:
First and foremost, we shall analyze why the wage or salary of the working classes is structured into different components such as basic and other allowances. To my mind, basic is the actual monetary consideration for the services rendered by an employee to the employer, and other allowances might have originated in the form of compensation in view of the specific or special needs arising out of employment in order to facilitate the discharge of duties comfortably but might have become conventional benefiting both the employer and the employee; the employer getting the benefit of lesser contribution in terms of indirect commitments such as contribution to schemes of Provident Fund, Pension, Gratuity, and the like, and the employee stands for the overall increase in his pay package. It automatically follows that the grant of allowances to the wage earners or salaried people is subject to the existence of certain specific or special conditions associated with the employment which forms the basis for its grant. However, certain allowances like dearness allowance, which was necessitated by the phenomenal rise in prices of commodities during World War II, continue to remain forever as an essential component of the wage or salary structure of employees.
Second, apart from the TaxMan's point of view, how HRA is to be treated depends upon, as rightly pointed out by Loginmiracle, the HRA Policy of the organization. No need for HRA if the employee is to occupy the rent-free accommodation provided by the employer within the precincts of the place of employment. If HRA is granted as a grand component of the total pay-package, the question of the employed spouse, whether in the same organization or elsewhere, getting HRA has no relevance, I think.
From India, Salem
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6185Let me share my views on this thread as follows:
First and foremost, we shall analyze why the wage or salary of the working classes is structured into different components such as basic and other allowances. To my mind, basic is the actual monetary consideration for the services rendered by an employee to the employer, and other allowances might have originated in the form of compensation in view of the specific or special needs arising out of employment in order to facilitate the discharge of duties comfortably but might have become conventional benefiting both the employer and the employee; the employer getting the benefit of lesser contribution in terms of indirect commitments such as contribution to schemes of Provident Fund, Pension, Gratuity, and the like, and the employee stands for the overall increase in his pay package. It automatically follows that the grant of allowances to the wage earners or salaried people is subject to the existence of certain specific or special conditions associated with the employment which forms the basis for its grant. However, certain allowances like dearness allowance, which was necessitated by the phenomenal rise in prices of commodities during World War II, continue to remain forever as an essential component of the wage or salary structure of employees.
Second, apart from the TaxMan's point of view, how HRA is to be treated depends upon, as rightly pointed out by Loginmiracle, the HRA Policy of the organization. No need for HRA if the employee is to occupy the rent-free accommodation provided by the employer within the precincts of the place of employment. If HRA is granted as a grand component of the total pay-package, the question of the employed spouse, whether in the same organization or elsewhere, getting HRA has no relevance, I think.
From India, Salem
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Dear friends,
Let me share my views on this thread as follows:
First and foremost, we shall analyze why the wage or salary of the working classes is structured into different components such as basic and other allowances. To my mind, basic is the actual monetary consideration for the services rendered by an employee to the employer, and other allowances might have originated in the form of compensation in view of the specific or special needs arising out of employment in order to facilitate the discharge of duties comfortably. However, they might have become conventional, benefiting both the employer and the employee; the employer gains the benefit of lesser contribution in terms of indirect commitments such as contributions to schemes of provident fund, pension, gratuity, and the like, and the employee sees an overall increase in his pay package. It automatically follows that the grant of allowances to wage earners or salaried people is subject to the existence of certain specific or special conditions associated with employment, which forms the basis for its grant. However, certain allowances like dearness allowance, which was necessitated by the phenomenal rise in prices of commodities during World War II, continue to remain forever as an essential component of the wage or salary structure of employees.
Second, apart from the taxman's point of view, how HRA is to be treated depends upon, as rightly pointed out by loginmiracle, the HRA policy of the organization. There is no need for HRA if the employee is to occupy the rent-free accommodation provided by the employer within the precincts of the place of employment. If HRA is granted as a grand component of the total pay package, the question of the employed spouse, whether in the same organization or elsewhere, receiving HRA has no relevance, I think.
Happy sir,
You have provided an elaborate history of the origin of allowances. Such background information on labor laws is necessary. As an experienced person, only you can provide such information. The purpose of the thread is fulfilled by such experienced people. Merely clicking the appreciation button is not sufficient. Hence, I request you once again to continue to participate daily in one or other threads.
From India, Visakhapatnam
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Let me share my views on this thread as follows:
First and foremost, we shall analyze why the wage or salary of the working classes is structured into different components such as basic and other allowances. To my mind, basic is the actual monetary consideration for the services rendered by an employee to the employer, and other allowances might have originated in the form of compensation in view of the specific or special needs arising out of employment in order to facilitate the discharge of duties comfortably. However, they might have become conventional, benefiting both the employer and the employee; the employer gains the benefit of lesser contribution in terms of indirect commitments such as contributions to schemes of provident fund, pension, gratuity, and the like, and the employee sees an overall increase in his pay package. It automatically follows that the grant of allowances to wage earners or salaried people is subject to the existence of certain specific or special conditions associated with employment, which forms the basis for its grant. However, certain allowances like dearness allowance, which was necessitated by the phenomenal rise in prices of commodities during World War II, continue to remain forever as an essential component of the wage or salary structure of employees.
Second, apart from the taxman's point of view, how HRA is to be treated depends upon, as rightly pointed out by loginmiracle, the HRA policy of the organization. There is no need for HRA if the employee is to occupy the rent-free accommodation provided by the employer within the precincts of the place of employment. If HRA is granted as a grand component of the total pay package, the question of the employed spouse, whether in the same organization or elsewhere, receiving HRA has no relevance, I think.
Happy sir,
You have provided an elaborate history of the origin of allowances. Such background information on labor laws is necessary. As an experienced person, only you can provide such information. The purpose of the thread is fulfilled by such experienced people. Merely clicking the appreciation button is not sufficient. Hence, I request you once again to continue to participate daily in one or other threads.
From India, Visakhapatnam
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