Hi,

As per the West Bengal minimum wages notification, a highly skilled worker is to be paid Rs. 11,686/- for Zone I. This minimum wage is inclusive of House Rent Allowance (HRA), or do we need to pay an additional 5% with reference to the West Bengal HRA Act, 1974? I request your help in clearing this doubt.

Thank you.

From India, Pune
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HRA has to be paid separately. Minimum wages includes Basic an S K Bandyopadhyay (howrah, WB) 98310 81531
From India, New Delhi
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HRA has to be paid separately. Minimum wages includes Basic and DA. S K Bandyopadhyay (howrah, WB) 98310 81531
From India, New Delhi
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Thank you for your guidance sir.
From India, Pune
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Dear Mr. Dhansekhar,

This is in response to your query: House rent is a component under minimum wages. If one wishes to pay extra, there is no issue because it is a welfare measure.

As per the definition under the Minimum Wages Act of 1948, Section 2 (h) states that wages mean all remuneration capable of being expressed in terms of money, which would be payable to a person employed in respect of his employment or work done in his employment. This definition includes HOUSE RENT ALLOWANCE (w.e.f. 17/09/1957) but does not include gratuity, PF/ESI contributions, traveling allowance or concession, or the value of any facility or service extended to the employee. Technically, minimum wages can be split into: BASIC + DA + HRA.

From India, Mumbai
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House rent is a component of Minimum wages, which is a fact. However, all the States in India publish Minimum wages as Basic & DA. In the wage code, HRA has been dropped from the definition of minimum wages. At the same time, there are a few States that have State House rent Allowance Act which is 5% of Basic and DA.

Therefore, it would be better to pay 5% HRA in the case of WB under WB House Rent Allowance Act over and above the minimum wages as published by the State Government (Basic & DA).

S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions

From India, New Delhi
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