Hi,,,,,,,,,,,,,,,,,,,
I am working in manufacturing company. The company salary policy is basic 40% of gross, hra 24% of gross, ca 18% of gross & ma 18% of gross. company calculating pf deduction on basic (40% of gross), but for bonus calculation compny consider basic wages is (basic+ca+ma). My query is which basic should consider as a basic salary as per act.? Is there any allowances included in basic salary? Pls give me evidence or reference for basic salary definition. Pls. clear my query.
Thanks
Regards,
Ramesh Jadhav
9049213644
From India, Pune
2I am working in manufacturing company. The company salary policy is basic 40% of gross, hra 24% of gross, ca 18% of gross & ma 18% of gross. company calculating pf deduction on basic (40% of gross), but for bonus calculation compny consider basic wages is (basic+ca+ma). My query is which basic should consider as a basic salary as per act.? Is there any allowances included in basic salary? Pls give me evidence or reference for basic salary definition. Pls. clear my query.
Thanks
Regards,
Ramesh Jadhav
9049213644
From India, Pune
In your case, if 'ca' means city compensatory allowance or similar to it, the bonus is to be calculated on basic + ca but not ma, if it means medical allowance.
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
Basic pay is the same in any case....... basic pay out of your gross salary...... it may range between 30% to 60% of your gross pay depending upon the companies , which fix it according to their policies...........
Allowances does not include the basic but the percentage of allowances is calculated on basic.......
eg. if you gross is 30000pm, say basic is 40% of 30000 say around 12000pm approximately. so it will be 12000 (Basic pay) multiplied by what ever is your percentage of your allowances.........
Basic salary is the fixed salary, invariable, minimum wages, mandatory pay, fixed by the company to pay the employees. As per the legislative fixation, 30% to 60% of your salary shall be your basic pay, i.e., not less than 30% of your gross pay or take home salary ans not more than 60%, shall be basic pay. Since it is invariable and legislative fixation, all the other necessary calculation as to allowances and deductions are made on basic pay.
From India, Bangalore
Allowances does not include the basic but the percentage of allowances is calculated on basic.......
eg. if you gross is 30000pm, say basic is 40% of 30000 say around 12000pm approximately. so it will be 12000 (Basic pay) multiplied by what ever is your percentage of your allowances.........
Basic salary is the fixed salary, invariable, minimum wages, mandatory pay, fixed by the company to pay the employees. As per the legislative fixation, 30% to 60% of your salary shall be your basic pay, i.e., not less than 30% of your gross pay or take home salary ans not more than 60%, shall be basic pay. Since it is invariable and legislative fixation, all the other necessary calculation as to allowances and deductions are made on basic pay.
From India, Bangalore
Hey Bhaskar , In my company Basic salary is calculated "Gross-CCA=(Whatever) 70% is taken as basic. Example my salary is 30000-1000(CCA)= 29000 of 70% 20300 is taken as basic salary . Is it correct ?
From India, Mumbai
From India, Mumbai
Dear Ramesh;
For Bonus calculation you have to taken only Basic Salary.Diff. Company have diff. policies.Some company paid bonus on Basic Salary & Ex-Gratia on other allowance.Every company have diff. composition of Gross salary & CTC as per company policy.
Nitin
From India, Mumbai
For Bonus calculation you have to taken only Basic Salary.Diff. Company have diff. policies.Some company paid bonus on Basic Salary & Ex-Gratia on other allowance.Every company have diff. composition of Gross salary & CTC as per company policy.
Nitin
From India, Mumbai
Wages for the purpose of computation of bonus payable under the Bonus Act shall consist of Basic +DA + food allowance if any paid. Thus, if the salary paid by acomapny to an employee consits of basic + DA,then both the componnets need to be included for compuation of bonus subhject , of course to the wage limit of Rs.3500/-p.m prescribed under the Act. if teh salary paid by acompany consists only of Basic + other allowances like tarcvelling allowance or medical allowance etc, then basic only needs to be taken for computation.
B.Saikumar
Mumbai
From India, Mumbai
B.Saikumar
Mumbai
From India, Mumbai
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Definition - PF Basic Wages - Supreme Court - Brief.pdf
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