Hi Members,

I need your professional advice regarding the calculation of the Basic Pay component in our salary structure.

Is it permissible to set the Basic Pay as either 40% or 50% of the total CTC, or a fixed amount of ₹25,000, whichever is lower?

Our company is based in Maharashtra, I would like to confirm whether this formula complies with the relevant labor laws.

Looking forward to your guidance.

From India, Pune
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