Dear Shyam,
Greetings for the day,
First of all clear all confusion that basic salary is always a part of ctc, and from our point of view the bifurcation of salary will be basic salary- 60% of the gross salary( HRA- 40%-50% is exempted from taxes depend on the class of city, CCA- Rs. 825/- exempted from tax, mobile reimbursement, Medical Allowance - Rs. 1250/- pm is exempted from IT).
In ctc you can include EPF (both employee-employer share including admin. charges)+ ESIC (both contributions) + labour welfare fund (both share)+ the components of above mentioned bifurcations+aparts from this food coupans+holiday packages+furnished items provided by the company, but last but not least the basic wages will never be less than prescribed minimum wages of the state.
hope this clear all confusions,
thanks & regards,
from,
sumit kumar saxena,
9899669071, 0120-4131277
From India, Ghaziabad
252Greetings for the day,
First of all clear all confusion that basic salary is always a part of ctc, and from our point of view the bifurcation of salary will be basic salary- 60% of the gross salary( HRA- 40%-50% is exempted from taxes depend on the class of city, CCA- Rs. 825/- exempted from tax, mobile reimbursement, Medical Allowance - Rs. 1250/- pm is exempted from IT).
In ctc you can include EPF (both employee-employer share including admin. charges)+ ESIC (both contributions) + labour welfare fund (both share)+ the components of above mentioned bifurcations+aparts from this food coupans+holiday packages+furnished items provided by the company, but last but not least the basic wages will never be less than prescribed minimum wages of the state.
hope this clear all confusions,
thanks & regards,
from,
sumit kumar saxena,
9899669071, 0120-4131277
From India, Ghaziabad
The question itself is not so clear when you ask, "Is Basic Salary calculated on Gross or CTC".
However I admire the succint manner in which Mr. Raj Kumar has answered the query.
Basic Salary is independent of the Gross or the CTC, though it is a part of the CTC. Any change in the Basic pay will impact the Gross Salary and the CTC. But any change in the CTC or the Gross Pay need not necessarily impact the Basic Pay.
As has been very rightly explained by Mr. Raj Kumar any change in basic Pay will impact the Gross Salary or the CTC.
"Ask the right questions and you get the right answers"
Vasant Nair
From India, Mumbai
However I admire the succint manner in which Mr. Raj Kumar has answered the query.
Basic Salary is independent of the Gross or the CTC, though it is a part of the CTC. Any change in the Basic pay will impact the Gross Salary and the CTC. But any change in the CTC or the Gross Pay need not necessarily impact the Basic Pay.
As has been very rightly explained by Mr. Raj Kumar any change in basic Pay will impact the Gross Salary or the CTC.
"Ask the right questions and you get the right answers"
Vasant Nair
From India, Mumbai
Dear All,
Pl.clarify the following :
In a manufacturing Plant, when fire accident is occurred in Electrical Department, resuling an employee got injury due to short circuit, then we will submit Form 18 to the Inspector of Factories? But my doubt - Is it required to submit a report to Chief Electrical Inspector in the concerned area Or Not, since fire occured in Electrical department.
Awaiting your reply, immediately, please.
Regard,
Murali
From India, Hyderabad
Pl.clarify the following :
In a manufacturing Plant, when fire accident is occurred in Electrical Department, resuling an employee got injury due to short circuit, then we will submit Form 18 to the Inspector of Factories? But my doubt - Is it required to submit a report to Chief Electrical Inspector in the concerned area Or Not, since fire occured in Electrical department.
Awaiting your reply, immediately, please.
Regard,
Murali
From India, Hyderabad
Dear All,
When company is giving Compensatory Leaves (in lieu of Cash payments) to the employees who worked late hours as well as extra shifts, then while calculating the ELs for the end of year, How we have to work out these Compensatory Leaves, whether Present Day or Leave.
I request you to please clarify the above issue.
Regards,
Murali
From India, Hyderabad
When company is giving Compensatory Leaves (in lieu of Cash payments) to the employees who worked late hours as well as extra shifts, then while calculating the ELs for the end of year, How we have to work out these Compensatory Leaves, whether Present Day or Leave.
I request you to please clarify the above issue.
Regards,
Murali
From India, Hyderabad
Dear Mr. Raj,
If you could elaborate this with an example, it would be highly appreciated. If the basic amount is Rs 8000/- , how can we design the salary structure of the particular employee.
I thought Basic was a dependent function, as it has been discussed throughout this forum that basic should be around 40-50 % of Gross.But as you mention, CTC and gross are dependent functions of Basic. So what is the most essential thing we should have at hand while designing a salary structure, Basic or CTC?
Regards,
Surbhi
From India, Delhi
If you could elaborate this with an example, it would be highly appreciated. If the basic amount is Rs 8000/- , how can we design the salary structure of the particular employee.
I thought Basic was a dependent function, as it has been discussed throughout this forum that basic should be around 40-50 % of Gross.But as you mention, CTC and gross are dependent functions of Basic. So what is the most essential thing we should have at hand while designing a salary structure, Basic or CTC?
Regards,
Surbhi
From India, Delhi
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