As per Indian tax laws, there is no specific minimum percentage of HRA (House Rent Allowance) that needs to be considered in a salary breakup. However, to claim tax exemption on HRA, an employee needs to fulfil certain conditions.
The above-mentioned 40% and 50% are for tax exemption on HRA, i.e., 50% of basic salary for those living in metro cities (Mumbai, Delhi, Chennai, Kolkata) or 40% of basic salary for those living in non-metro cities.
The percentage of HRA in the salary breakup can be usually negotiated between the employer and the employee as a part of the overall salary package.