On which amount we calculate the basic. Is it the CTC amount or the gross CTC amount ? Ranjeet Kumar ranjeet_kumar393@yahoomail.com
From India, Mumbai
From India, Mumbai
477
Dear All,
The term Basic and CTC need not be inter related at all.
The Basic salary is fixed by the employer at his own free will. While fixing the basic one needs to ensure that the company follows the Minimum wages for the category of employment only. The Minimum wages act that is amended from time to time for various industries forms the guideline for fixing Basic and DA. If you pay above the act then there is no need to link it either with the Gross Wages or CTC.
However, some companies follow this pattern but it is not mandatory/ statutory.
Trust the matter is clear.
M.V.KANNAN
From India, Madras
The term Basic and CTC need not be inter related at all.
The Basic salary is fixed by the employer at his own free will. While fixing the basic one needs to ensure that the company follows the Minimum wages for the category of employment only. The Minimum wages act that is amended from time to time for various industries forms the guideline for fixing Basic and DA. If you pay above the act then there is no need to link it either with the Gross Wages or CTC.
However, some companies follow this pattern but it is not mandatory/ statutory.
Trust the matter is clear.
M.V.KANNAN
From India, Madras
Dear Mr.Rajneeth Kumar,
There is no fixed (statutory) percentage for basic whether on CTC or Gross Salary. Basic is basically fixed keeping in mind The minimum wages act 1948 that is laid down by the respective state government and the employment category as mentioned above by Mr. M.V. Kannan.
Conventionally it is around 40% of the Gross salary arrived at, which is very convenient to process PF and other statutory obligations.
Regards,
Shreekanth.P.R
From India, Mumbai
There is no fixed (statutory) percentage for basic whether on CTC or Gross Salary. Basic is basically fixed keeping in mind The minimum wages act 1948 that is laid down by the respective state government and the employment category as mentioned above by Mr. M.V. Kannan.
Conventionally it is around 40% of the Gross salary arrived at, which is very convenient to process PF and other statutory obligations.
Regards,
Shreekanth.P.R
From India, Mumbai
I agree with u sir. Fringe benefits are variables so that the basic should not be calculated on these.
From India, Mumbai
From India, Mumbai
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