Tuesday, November 9, 2010

House Rent Allowance (HRA) as a component of wage.

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


No comments:

Post a Comment