There is no law to fix basic salary. Basically, Employers see their benefit while fixing the Basic Salary. Since all the perks such as PF, Gratuity, Superannuation, etc. are calculated based on the basic salary only.
Secondly, the higher the salaries, the less the basic salary percentage works in favor of the employees when calculating their income tax. Therefore, whenever fixing basic salaries, all these factors must be kept in mind. The basic salary plays a major role in calculating the CTC. You may reduce or increase CTC with small changes in the Basic Salary.
Regards,
Manish Bali
From India, Delhi
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39Secondly, the higher the salaries, the less the basic salary percentage works in favor of the employees when calculating their income tax. Therefore, whenever fixing basic salaries, all these factors must be kept in mind. The basic salary plays a major role in calculating the CTC. You may reduce or increase CTC with small changes in the Basic Salary.
Regards,
Manish Bali
From India, Delhi
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Dear Jayant,
Under Shop & Establishment Maharashtra, the minimum wage consists of Basic + Special Allowance (also called DA). As long as the total amount given under these two heads is more than or equal to the minimum wage, you aren't committing an error.
Dear Mr. Dinesh, the minimum for Basic + DA is as given above. Concerning the maximum limit, it is not defined in a clear legal manner; however, the industry standard is anywhere between 35% to 50% of Gross.
Regards,
Deena Jagasia
From India, Mumbai
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Under Shop & Establishment Maharashtra, the minimum wage consists of Basic + Special Allowance (also called DA). As long as the total amount given under these two heads is more than or equal to the minimum wage, you aren't committing an error.
Dear Mr. Dinesh, the minimum for Basic + DA is as given above. Concerning the maximum limit, it is not defined in a clear legal manner; however, the industry standard is anywhere between 35% to 50% of Gross.
Regards,
Deena Jagasia
From India, Mumbai
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