Question:

HRA component, can it be removed?

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Hi, a new job is offering me a HRA component which is a good amount. However, I own a flat and hence don't need HRA. Can I ask the company to restructure my package so that the HRA component is removed and the amount redistrbuted across other benefits?

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  1. Normally yes, this is between you and your company.


  2. Can you - yes but should the firm abide by your request - not necessary. Not many firms have the package pruned to the Employee's requirement. I know some firms where they give everything under a head called "basket of allowances" and allow the employees to choose the % of each in the basket.

    I suggest that you use a tax calculator (one such is at http://prrajan-tax.blogspot.com/2008/03/... and obtain the best option before you put HRA in other components; if the pay package is high this change might not really help at all...

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