House Rent Allowance (HRA)

House Rent Allowance (HRA) is a part of an employee’s salary that employers provide to help cover the cost of renting a home. It is usually tax-exempt up to a certain limit, and the amount varies based on factors like the employee’s location and salary.

To work out the actual HRA amount, employers look at the rent the employee pays, their salary, and how the city is classified under tax regulations.