How much should basic pay be calculated from gross salary.. CiteHR

HR - Aone Biz Started The Discussion:

Looking at the basic pay structure my friend said that Basic pay should be 70% of the salary. Right now i have allotted 50% of the Gross Salary as Basic Pay. Is there any law or case which guides us on this issue ?

Warm Regards,

pushpagirish -  Member Since: Aug 2009
Its not rule like only this much percentage has to be calculated. Basically it varies from 40 to 50% of gross salary...

sujalhshah -  Member Since: Apr 2010
Hi...Do u think employer can fix basic salary amount to anything they want to? one of my friend's ctc is 25000 and basic salary is only 1300 rs... is it possible? is there any rule regarding minimum basic amount?

ramneet.s -  Member Since: Aug 2009
Basic salary should be just more than minimum basic wages prevalent, but usually as a convention its 35% to 50 % varying with company policies.

vigsysjesu -  Member Since: Dec 2008
No minimum basic amount prescribed by law. But, normally it will be calculated 40% to 50 % of the gross. Your basic and DA is your real salary.


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