Is the Basic 60%must on the Gross or we can calliculate 30% please help me the Basic calliculations please
From India, Bangalore
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5From India, Bangalore
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The basic can be a maximum of 35% and cannot exceed that. If you want, you can consider it as additional or special basic, which will be accounted for statutory calculations like PF, ESI, Gratuity, etc.
From India, Madras
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From India, Madras
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If it really is 60%, you must consider the income tax for which you will not be exempted. You cannot take advantage of HRA even if you have the rent receipt. Also, ensure that if the total crosses 6500, you are not eligible for a bonus, which may be one of the causes. You can then fix the ex gratia as decided by the employer. Additionally, there are advantages for the organization in showcasing the privileges to obtain banking loans.
From India, Madras
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From India, Madras
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Dear Sir,
You can set the basic salary according to your convenience or provide employees with income tax benefits, but it is mandatory that the basic salary should not be less than the minimum wages of the state.
Thanks,
Avinash
From India, Mumbai
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You can set the basic salary according to your convenience or provide employees with income tax benefits, but it is mandatory that the basic salary should not be less than the minimum wages of the state.
Thanks,
Avinash
From India, Mumbai
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Subject: How to Make a Salary Slip
Dear Sir,
I am new to this site and I am seeking help from you seniors. I have a confusion regarding my company, M.K Cooling Towers Pvt Ltd, which is in the manufacturing sector. Our workers are employed on a monthly basis and also work overtime. Could you please assist me in understanding how to make payments for all the workers, including overtime compensation?
Thank you for your support.
Sincerely,
[Your Name]
From India, Delhi
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Dear Sir,
I am new to this site and I am seeking help from you seniors. I have a confusion regarding my company, M.K Cooling Towers Pvt Ltd, which is in the manufacturing sector. Our workers are employed on a monthly basis and also work overtime. Could you please assist me in understanding how to make payments for all the workers, including overtime compensation?
Thank you for your support.
Sincerely,
[Your Name]
From India, Delhi
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Hi, Please refer to the minimum wages (State wise and Zone wise) for fixing the Basic Salary and it should not be less than the wages fixed by the Government.
From India
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From India
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Dear All,
Calculation of basic wages for workers is based on the daily basic wages notified by the central/state government, which is then multiplied by the total number of days in a month, typically 30. This calculation determines the basic wages, with other allowances being additional. For staff, the basic wages typically range between 30% to 35% of the Cost to Company (CTC).
Regards,
Neeraj Shrivastava
Manager HR
ITD Cementation India Limited
From India, Mumbai
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Calculation of basic wages for workers is based on the daily basic wages notified by the central/state government, which is then multiplied by the total number of days in a month, typically 30. This calculation determines the basic wages, with other allowances being additional. For staff, the basic wages typically range between 30% to 35% of the Cost to Company (CTC).
Regards,
Neeraj Shrivastava
Manager HR
ITD Cementation India Limited
From India, Mumbai
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Dear,
To my knowledge the basic pay should be minimum 30% (State wise minimum wages) of the gross. However, it is in the hands of the HR or accountant to decide and give the recommendations to the management looking at the merits and demerits of fixing the slab in a company.
Fixing a basic pay to the minimum of 30 % has certain demerits and if the slab is increased more than 30% also has some demerits. Such as:-
1) If the basic pay is less, then the deductions towards the provident fund from the employee’s portion will be less.
2) If the basic pay is less ,then contributions from employer’s end on contributing on Provident fund will also be less.
3) Calculations during full and final settlement for an employee will be less.
4) Eligible for bonus if the basic is below 6500/-
Similarly if the Basic pay is more than 30% then it leads to getting into the taxable bracket without any exemptions towards HRA, etc…
Hence, I would suggest to have the slab fixed based on the salaries giving in the company. If maximum # of employees fall under the bracket of tax then better to go for 30% and if it is other wise then increase it as per the need and fix the slab.
However, if this question is raised just to gain the knowledge then, these are the +ve and –ve results of having a high % on basic pay and low % on basic pay.
Hope this helps you.
Regards,
Avi
From India, Hyderabad
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To my knowledge the basic pay should be minimum 30% (State wise minimum wages) of the gross. However, it is in the hands of the HR or accountant to decide and give the recommendations to the management looking at the merits and demerits of fixing the slab in a company.
Fixing a basic pay to the minimum of 30 % has certain demerits and if the slab is increased more than 30% also has some demerits. Such as:-
1) If the basic pay is less, then the deductions towards the provident fund from the employee’s portion will be less.
2) If the basic pay is less ,then contributions from employer’s end on contributing on Provident fund will also be less.
3) Calculations during full and final settlement for an employee will be less.
4) Eligible for bonus if the basic is below 6500/-
Similarly if the Basic pay is more than 30% then it leads to getting into the taxable bracket without any exemptions towards HRA, etc…
Hence, I would suggest to have the slab fixed based on the salaries giving in the company. If maximum # of employees fall under the bracket of tax then better to go for 30% and if it is other wise then increase it as per the need and fix the slab.
However, if this question is raised just to gain the knowledge then, these are the +ve and –ve results of having a high % on basic pay and low % on basic pay.
Hope this helps you.
Regards,
Avi
From India, Hyderabad
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Hi,
As per my knowledge, the standard salary breakup is as follows:
Basic: 50% of Gross Salary but not less than the Fixed Minimum wages of the respective state government.
HRA: 40% of Basic Salary
Conveyance: Maximum Rs. 800 or 10% of Basic for getting IT benefits
Medical: Maximum Rs. 1250 or 10% of Basic for getting IT benefits
Other/Special Allowances: The remaining/balance amount can be added to other or special allowances.
I am looking forward to your valuable suggestions and feedback.
Thanks and Regards,
Harish Kumar.K.S
Mob: 9986839169
From India, Bangalore
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As per my knowledge, the standard salary breakup is as follows:
Basic: 50% of Gross Salary but not less than the Fixed Minimum wages of the respective state government.
HRA: 40% of Basic Salary
Conveyance: Maximum Rs. 800 or 10% of Basic for getting IT benefits
Medical: Maximum Rs. 1250 or 10% of Basic for getting IT benefits
Other/Special Allowances: The remaining/balance amount can be added to other or special allowances.
I am looking forward to your valuable suggestions and feedback.
Thanks and Regards,
Harish Kumar.K.S
Mob: 9986839169
From India, Bangalore
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It is understood that the labor department releases minimum basic wages, which means that the gross minimum should not be less than recommended. However, the basic wage can be lower, but it should be at least 60% of the basic minimum wages. Please correct me if I am wrong.
Anil Rathi
From India, Mumbai
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Anil Rathi
From India, Mumbai
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