Hi all,
Can anybody guide me on whether there is a government guideline under the Karnataka Shops and Commercial Establishments Act for the minimum basic salary? Here, I am not referring to minimum wages. The question pertains to the minimum basic salary for employees. What percentage of the total salary should be allocated as basic salary? Is there a rule stipulating that the minimum basic salary should be 50% of the total or gross salary?
Thanks,
From India, Bangalore
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4Can anybody guide me on whether there is a government guideline under the Karnataka Shops and Commercial Establishments Act for the minimum basic salary? Here, I am not referring to minimum wages. The question pertains to the minimum basic salary for employees. What percentage of the total salary should be allocated as basic salary? Is there a rule stipulating that the minimum basic salary should be 50% of the total or gross salary?
Thanks,
From India, Bangalore
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In my opinion Act does not speak about quantum of basic salary.
From India, Thane
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From India, Thane
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Please refer to minimum wages comprising of basic and VDA applicable to shops and commercial establishments in Karnataka based on the category of employees. The salary mentioned therein should be adhered to. Fixation of salary does not come under the purview of the Shops and Commercial Establishments Act.
From India, New Delhi
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From India, New Delhi
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Basic Salary is the integral part of Minimum Wages. Mr. Gera rightly said, quantum us Basic Salary isn’t scripted in Act.
From India, Mumbai
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From India, Mumbai
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Dear Srinath Sai Ram, In my opinion basic salary should be 60% of total wages and 20% HRA balance other allowances..... K.Jayaraman
From India, Karaikal
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From India, Karaikal
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As per the law, you need to follow the minimum wages applicable to your state. There is no other specification of a percentage to be followed for the basic in gross salary. Also, it is mostly followed in the market to take an average of 50-60% of the gross salary while calculating the basic salary.
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