Hello can any one clear me the calculation of basic salary :icon14: URGENT santosh.rn01@gmail.com
From India, Bangalore
From India, Bangalore
basic sal is usually rangin from 35-60% of the ctc package that u have fixed for the candidate. However u may wish to reduce that amount as well and add it aty other headings cos the more basic u keep the more will be his deduction for pf (12% of basic). i hope this satisfies ur queries
From India, New Delhi
From India, New Delhi
hai,
basic salary is mostly depends on city or standard of living. will differ city to city .as one of our colleague told it is 35 - 40 % in most of the companies. we follow 50% basic on gross salary. but where we consider the employee ctc on salary, basic salary will have more impact
From India, Bangalore
1basic salary is mostly depends on city or standard of living. will differ city to city .as one of our colleague told it is 35 - 40 % in most of the companies. we follow 50% basic on gross salary. but where we consider the employee ctc on salary, basic salary will have more impact
From India, Bangalore
Dear All,
The minimum Basic salary should be 75% of an employees gross salary if no allowances is provided extensively. However if D.A , H.R.A and C.C.A is provided then basic salary can be reduced to 60% of gross which is minimum.
Ref :
As per Provident Fund Act of 1952.
You can also contact any of the P.F officers before fixing up the salary components.
This is how , we follow in our organisation
Regards
Dinesh.R
9962359250
From India, Madras
The minimum Basic salary should be 75% of an employees gross salary if no allowances is provided extensively. However if D.A , H.R.A and C.C.A is provided then basic salary can be reduced to 60% of gross which is minimum.
Ref :
As per Provident Fund Act of 1952.
You can also contact any of the P.F officers before fixing up the salary components.
This is how , we follow in our organisation
Regards
Dinesh.R
9962359250
From India, Madras
There is no hard and fast rule for fixing basic salary. No Act or rule talks about BP fixation. Generally, as a matter of extreme caution, it is fixed between 30 to 35% of the total salary, inclusive of all allowances. If the salary is considered as consolidated pay, then the total salary is considered as BP for PF calculation etc. ( But this is very rare).
Fixation of basic pay veries from organisation to organisation. But better to follow a regional pattern always.
Gopan
From India, Kochi
Fixation of basic pay veries from organisation to organisation. But better to follow a regional pattern always.
Gopan
From India, Kochi
Is it compulsary to keep same percentage of basic salary to each employee? Regards Madhura
From India
From India
Dear RNS,
Please look first on minumum wages requirements,the basic+DA should not be less than the minimum wages of the region/state.
Then as per your company policy about the ESI/PF requirements that at how much extends your company can afford on this.
Then looks into the bonus percentage(if your company giving 8.33% of the annual salary then you can fix the basic salary at the highest upto 70%,if it is upto 20% then you can reduce the basic salary rate upto 40%
See the history of the employees,if employees are working continuosly and they generally leave the company after the long duration whereas gratuity if applicable then basic should be less(if employee exits is frequenty (less then 5 year) you can give the higher salary.
Please by keeping the above facts in your mind ,provide the salary.
You can catagories the emplyees of different and give them salary accordingly.
Your basic: 40% to 70%
Your DA: 5% to 8%
Your HRA: 20% to 40%
Your Conveyence: 10 to 30%
Special allowance: 15 to 35%
Phone bill :5 to 15%
Laudary bill:5 to 10
Food bill:5 to 12%
Business promotion: 5 to 10%
Medical 5 to 15%
For more details visit at our website: :: Global Overseas - Home :: Compliance Audit, ISO certification, BFSI Audit, Export, Jem, Jewellery, chemical Industry.
and call me at my cell:9899775578/9958404503(011-22450753)
Best Regards
Mohammad Sajid Ansari
From India, Delhi
Please look first on minumum wages requirements,the basic+DA should not be less than the minimum wages of the region/state.
Then as per your company policy about the ESI/PF requirements that at how much extends your company can afford on this.
Then looks into the bonus percentage(if your company giving 8.33% of the annual salary then you can fix the basic salary at the highest upto 70%,if it is upto 20% then you can reduce the basic salary rate upto 40%
See the history of the employees,if employees are working continuosly and they generally leave the company after the long duration whereas gratuity if applicable then basic should be less(if employee exits is frequenty (less then 5 year) you can give the higher salary.
Please by keeping the above facts in your mind ,provide the salary.
You can catagories the emplyees of different and give them salary accordingly.
Your basic: 40% to 70%
Your DA: 5% to 8%
Your HRA: 20% to 40%
Your Conveyence: 10 to 30%
Special allowance: 15 to 35%
Phone bill :5 to 15%
Laudary bill:5 to 10
Food bill:5 to 12%
Business promotion: 5 to 10%
Medical 5 to 15%
For more details visit at our website: :: Global Overseas - Home :: Compliance Audit, ISO certification, BFSI Audit, Export, Jem, Jewellery, chemical Industry.
and call me at my cell:9899775578/9958404503(011-22450753)
Best Regards
Mohammad Sajid Ansari
From India, Delhi
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