There is no law to fix basic salary.
Basically, Employer see their benefit while fixing Basic Salary.
Since all the Perks as, PF,Gratuity Superannuation etc. calculate on basic only.
Secondly, Higher the salaries less the basic salary percentage works in favor of employees also while calculating their income tax.
Therefore, whenever fix basic salaries,these all factors must keep in mind, while calculating CTC basic salary play major role. You may reduce or increase CTC with the small changes in Basic Salary.
Regards
Manish Bali
From India, Delhi
38Basically, Employer see their benefit while fixing Basic Salary.
Since all the Perks as, PF,Gratuity Superannuation etc. calculate on basic only.
Secondly, Higher the salaries less the basic salary percentage works in favor of employees also while calculating their income tax.
Therefore, whenever fix basic salaries,these all factors must keep in mind, while calculating CTC basic salary play major role. You may reduce or increase CTC with the small changes in Basic Salary.
Regards
Manish Bali
From India, Delhi
Dear Jayant,
Under Shop & Estb Maharashtra , the minimum wage consists of Basic +Special Allowance(also called DA).
As long as the total amount given under these two heads is more than or equal to the minimum wage, you aren't committing an error.
Dear Mr Dinesh - The minimum for Basic+DA is as given above. As far as Maximum limit is concerned, it is not defined in a clear legal manner, however, the industry standard is anywhere between 35% to 50% of Gross.
Regards,
Deena Jagasia
From India, Mumbai
Under Shop & Estb Maharashtra , the minimum wage consists of Basic +Special Allowance(also called DA).
As long as the total amount given under these two heads is more than or equal to the minimum wage, you aren't committing an error.
Dear Mr Dinesh - The minimum for Basic+DA is as given above. As far as Maximum limit is concerned, it is not defined in a clear legal manner, however, the industry standard is anywhere between 35% to 50% of Gross.
Regards,
Deena Jagasia
From India, Mumbai
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