hello gdmrg eveyone , i want to know how the basic calculate is there any percentage of whole salary or not if yes, so what a percentage of it.
From India, Noida
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From India, Noida
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To decide on the Basic salary, you need to consider the following:
1. Minimum Wages Act - The Basic salary should not be less than the prescribed Minimum Wages.
2. The PF Department insists that the employer sets the Basic salary (plus Dearness Allowance) at not less than 50% of the gross salary. Otherwise, they believe that we are trying to evade the PF liability.
From India, Chennai
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1031. Minimum Wages Act - The Basic salary should not be less than the prescribed Minimum Wages.
2. The PF Department insists that the employer sets the Basic salary (plus Dearness Allowance) at not less than 50% of the gross salary. Otherwise, they believe that we are trying to evade the PF liability.
From India, Chennai
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Dear Ankit Jain,
Your query is not very clear. There is no method for the calculation of basics; rather, basic is itself a component of wages or salary. The wages have been defined differently in each of the enactments; as such, you have to refer to the particular enactment to know the components. For instance, the Payment of Wages Act, 1936, includes all remuneration (whether by way of salary, allowance, or otherwise) expressed in terms of money or capable of being so expressed to fulfill the terms of employment.
BS Kalsi
Member since August 2011
From India, Mumbai
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Your query is not very clear. There is no method for the calculation of basics; rather, basic is itself a component of wages or salary. The wages have been defined differently in each of the enactments; as such, you have to refer to the particular enactment to know the components. For instance, the Payment of Wages Act, 1936, includes all remuneration (whether by way of salary, allowance, or otherwise) expressed in terms of money or capable of being so expressed to fulfill the terms of employment.
BS Kalsi
Member since August 2011
From India, Mumbai
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Ankit,
Basic is calculated as a percentage of the gross or whole salary. Generally, any company can give different percentages to the components of the salary package. However, the total must be equal to 100.
For example, if the gross or total salary is 50000, then the components of the salary could be Basic 50% of 50000, i.e., 25000, HRA 25% of 25000, i.e., 12500, and other allowances 25%, i.e., 12,500.
Srinivas
From India, Hyderabad
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Basic is calculated as a percentage of the gross or whole salary. Generally, any company can give different percentages to the components of the salary package. However, the total must be equal to 100.
For example, if the gross or total salary is 50000, then the components of the salary could be Basic 50% of 50000, i.e., 25000, HRA 25% of 25000, i.e., 12500, and other allowances 25%, i.e., 12,500.
Srinivas
From India, Hyderabad
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