In my current organization, the calculation of basic salary is 40% of Monthly gross. I want to restructure the entire CTC structure of the organization, can I keep basic salary as 50% of CTC instead of gross?
From India, Hyderabad
From India, Hyderabad
You can have any structure but ensure that the Basic&DA is not lesser than the minimum wages
From India, Bangalore
639From India, Bangalore
Hello Priyanka.K.
There is no issue whether the basic will be @ 40% or 50%. There's no stipulation in the rule books as at present. However once the new Code on Wages are to be implemented there is a compulsion pegged at a minimum of 50% of gross salary. That's not too far I hope. However your attempt to link it with CTC leads you nowhere. This is because CTC is recognised in our statute and there is no uniformity either in its concept or in components across various sectors of our economy. I hope you are aware what are included under CTC and it's quantum and all those are meant not to be disbursed in cash on monthly basis similar to disbursing the salary. Needless to elaborate further. But it doesn't mean many of these components can't be codified and quantified, broadly. But still no employer is going to accept your ambitious 50% on CTC for the simple reason that consequential financial burden going to be countless/unbearable/prohibitive. This is because various employee benefits, not payable in cash under various acts if and when applied on monthly basis would be based on Basic pay as per various applicable acts in vogue.
That apart, are you empowered to take decision on these vital policy guidelines ?.
From India, Bangalore
There is no issue whether the basic will be @ 40% or 50%. There's no stipulation in the rule books as at present. However once the new Code on Wages are to be implemented there is a compulsion pegged at a minimum of 50% of gross salary. That's not too far I hope. However your attempt to link it with CTC leads you nowhere. This is because CTC is recognised in our statute and there is no uniformity either in its concept or in components across various sectors of our economy. I hope you are aware what are included under CTC and it's quantum and all those are meant not to be disbursed in cash on monthly basis similar to disbursing the salary. Needless to elaborate further. But it doesn't mean many of these components can't be codified and quantified, broadly. But still no employer is going to accept your ambitious 50% on CTC for the simple reason that consequential financial burden going to be countless/unbearable/prohibitive. This is because various employee benefits, not payable in cash under various acts if and when applied on monthly basis would be based on Basic pay as per various applicable acts in vogue.
That apart, are you empowered to take decision on these vital policy guidelines ?.
From India, Bangalore
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CTC Structure.xls