Govt. Guidelines for Minimum Basic Salary .... Urgent

sweetysingh · #1 (**permalink**) 29-06-2007, 01:09 PM

Hi all,

Can anybody tell me that whether there is a govt. guideline for minimum basic salary? Here I am not talking about minimum wages. The question is for minimum basic salary.

What % of total salary shall be given as Basic salary?

Is there any rule which says that minimum basic should be 70% of the total / gross salary?

Is there any guideline that the minimum basic slaray should be Rs.2500/- pm?

The above are the sugessions given to me by some of my friends. They are also not very clear on this.

Need your help.

thanks,

Sweety Singh

vikasdubey · #2 (**permalink**) 29-06-2007, 07:14 PM

hi sweety...

I am also looking for same thing.I would like to know if their is some legal ceiling regarding components of salary especially basic.Also to what limit the other components are non taxable like Conveyance,Med. allowance, special Allowance etc.
I would appreciate if u send me the information about the topic.

regards
vikas

sweetysingh · #3 (**permalink**) 29-06-2007, 10:09 PM

Hi Vikas,

See the attachment (everything except the ceiling on basic salary is covered in it with case studies).

It will definitely help you.

Pls let me know if anything on Basic salary comes to your notice.

Sweety Singh

vikasdubey · #4 (**permalink**) 30-06-2007, 01:58 PM

hi sweety
Greetings of the day.......

Thanx a ton for very usefull material........

bye
vikas

sweetysingh · #5 (**permalink**) 01-07-2007, 07:11 PM

Hi Friends!

I need ur help. Pls respond...

thanks

Sweety Singh

bhavinvahia · #6 (**permalink**) 01-07-2007, 08:29 PM

Dear Sweety,

To the best of my knowledge there is no such government rule, but you need to protect the minimum wages (i.e. Basic & DA) as fixed by the State Government.

Companies also have their own policy devised for deciding Basic looking to the cost Implications.

I hope this would throw some light.

Regards,
Bhavin Vahia

sweetysingh · #7 (**permalink**) 04-07-2007, 12:17 AM

Hi everybody!

What's up? 129 views and no answers???

Can anybody please help me?

thanks,
Sweety Singh

vikramlamhe · #8 (**permalink**) 05-07-2007, 08:45 AM

As for as I know there is no such Govt rule/legislation for fixing of Minimum basic salary. State Govt revises minimum wages twice it in a year.

I have seen some employer further byfercating this minimum wages in to Basic,HRA,other allowances to reduce their Co. share pf amount, which is not legal.

Suppose if there is minimum wages is Rs.3510/- in any state, the employer will have to deposit 12 % above said amount in PF ( 8.33 % in Penson fund & 3.67 % in PF).

Regds,

Vikram Singh

Anupama Saini · #9 (**permalink**) 05-07-2007, 11:31 AM

Generelaly the rule which is followed is that the basic should not be less than 35% of the gross salary.

Now there is another picture to it.

In case of minimum wages ,the PF has to be deducted on the unskilled minimum wages at least which means that unskilled mimium wage will be the basic salary in all three cases(unskilled, semi-skilled, skilled) to avoid any problems during Pf inspection.

Regard
anu

rameshbala · #10 (**permalink**) 07-07-2007, 12:57 PM

Dear SweetySingh,

Can U mail me the attachment

Ramesh bala

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