Dear All In Salary structure Basic component should be at what rate ? Is there any Legal stand for it ? or it can be very by company policy ? Thanks Raj
From India
24From India
Basic component in the Salary structure varies company to company based on their policies. The standard that I have seen in most of the organisation is 35% of the gross salary. /r
From India
From India
The only legal basis is provided in the form of minimum wages which consists of a basic + DA notified by teh Government an this is applicable to employees performing skilled or unskilled or technical kind of jobs.
B.Saikumar
HR &Labour Law Advisor
Mumbai
From India, Mumbai
B.Saikumar
HR &Labour Law Advisor
Mumbai
From India, Mumbai
If you keep Basic higher and are contributing towards PF, for the same CTC, the carry home salary will become lower as PF is applicable on the Basic + DA (if being paid). Also Gratuity is payable on the Basic + DA, so by keeping Basic high Employer's liability towards Gratuity is also increased ! If you do not want to contribute towards PF, keep basic above Rs 6500 but it need not be any % of the gross/ CTC !
From India, Jaipur
From India, Jaipur
Hi...
In my company the base pay of every employee is calculated on different percentages. Some have high basic pay and low HRA, Conveyance and Special Allowances.Whereas others have low Basic Pay and high HRA, Conveyance and Special allowances.PF and ESI deduction is as per law.
My question is Does Companies follow even such policies where in every employee has different percentage on their respective CTC's.
My company is a branch with its head office located in Delhi.The pay roll is prepared in Delhi.
**Is reeving the salary slip is the right of the employee.???
I kindly request to give valuable response to the above.
From Netherlands
In my company the base pay of every employee is calculated on different percentages. Some have high basic pay and low HRA, Conveyance and Special Allowances.Whereas others have low Basic Pay and high HRA, Conveyance and Special allowances.PF and ESI deduction is as per law.
My question is Does Companies follow even such policies where in every employee has different percentage on their respective CTC's.
My company is a branch with its head office located in Delhi.The pay roll is prepared in Delhi.
**Is reeving the salary slip is the right of the employee.???
I kindly request to give valuable response to the above.
From Netherlands
Yeah soofia,
Salary depends purely on negotiation between the employer and the employee. So it differs, and kept confidential. But the established fact is, it can not pay less than 30% or more than 60%. If you claim 40000/- as your basic pay, and the HR limited to pay 60000/- gross to the employee during negotiation, then they adjust with the amount reducing other benefits so that it does not exceed the amount prescribed by the management. So that they can retain the employee...
Yes. if you want the Salary slip, then it's your right. (but some companies cover it off in there relieving formalities, just by mentioning the salary drawn, adjusting with the banking transactions, so proof of salary drawn is important).
From India, Bangalore
Salary depends purely on negotiation between the employer and the employee. So it differs, and kept confidential. But the established fact is, it can not pay less than 30% or more than 60%. If you claim 40000/- as your basic pay, and the HR limited to pay 60000/- gross to the employee during negotiation, then they adjust with the amount reducing other benefits so that it does not exceed the amount prescribed by the management. So that they can retain the employee...
Yes. if you want the Salary slip, then it's your right. (but some companies cover it off in there relieving formalities, just by mentioning the salary drawn, adjusting with the banking transactions, so proof of salary drawn is important).
From India, Bangalore
Minimum Basic is given under Minimum Wages Act 1948. You can not give less than that which may turn in to violation of Act.
Above to State Declared Minimum Basic you can give more than that which your management can decide.
I can say : Out of 100% salry amout 60% should be in basic. Out of 60% of basic 30% should be Special Allowance.
HRA 5% OF BASIC + SPECIAL ALLOW.
Rest 40% should be for allowances.This will helps Employer to be in a safer & legal position as well will help employees to have good pay structure from Bonus , Gratuity, PF point of view...
From India, Pune
Above to State Declared Minimum Basic you can give more than that which your management can decide.
I can say : Out of 100% salry amout 60% should be in basic. Out of 60% of basic 30% should be Special Allowance.
HRA 5% OF BASIC + SPECIAL ALLOW.
Rest 40% should be for allowances.This will helps Employer to be in a safer & legal position as well will help employees to have good pay structure from Bonus , Gratuity, PF point of view...
From India, Pune
basic pay has to be between 30% to 60% of your gross salary. And for your second question, I as an employer pay you 100% basic pay (so 100% taxable), are you ready to incur all the other expenses by your own, like transportation, all kinds insurance coverage, I need not recognize your good work because I need not pay you incentives... if you still could not agree, join the department of employment government of India and suggest your ideas ;-) ...........
From India, Bangalore
From India, Bangalore
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Salary-Note.doc
SALARY SHEET CALCULATION.xls