HOUSE RENT ALLOWANCE ( H R A )
WHETHER A COMPONENT OF WAGES OR NOT UNDER VARIOUS LABOUR STATUES…..
Wage has been defined differently in different statutes. On perusal it reveals that House Rent Allowance (HRA) is one of the component of the wages. At the same time it is not given identical treatment as a component of wage under all Labour Statutes with the result many employers are confused whether HRA has to be included or not while computing benefits like Gratuity, Bonus, ESIC etc..
Status of HRA as Component of wage computing benefits under various Labour Acts in India are given in the table-
SR NO. | THE ACT | SECTION OF THE ACT | HRA IS COMPUTED OR NOT |
1 | INDUSTRIAL DISPUTES ACT,1947 | SEC.2(rr) | YES |
2 | EMPLOYEE PROVIDENT FUND ACT,1952 | SEC.2b r.w. SEC.6 | NO |
3 | EMPLOYEE STATE INSURANCE ACT,1948 | SEC.2(22) | YES |
4 | PAYMENT OF BONUS ACT,1965 | SEC.2(21) | NO |
5 | PAYMENT OF GRATUITY ACT,1972 | SEC.2(s) | NO |
6 | CONTRACT LABOUR (REGUSLATION AND ABOLITION ACT), 1970 | SEC.2(h) | NO |
7 | PAYMENT OF WAGES ACT, 1936 | SEC.2(VI) | NO |
8 | BOMBAY SHOPS AND ESTABLISHMENT ACT, 1948 | SEC.2(30) | NO |
9 | THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 | SEC.2(30) | YES |
10 | MATERNITY BENEFIT ACT, 1961 | SEC.3(n) | YES |
11 | MINIMUM WAGES ACT, 1948 | SEC.2(h) | YES |
12 | BOMBAY INDUSTRIAL RELATIONS ACT, 1946 | SEC.2(39) | NO |
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