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wwwganesh
Friends, Is there a official communication / guideline where it says, the basic salary should be 50-60% of the total CTC ?
From India, Madras
mvram444
1

Ganesh, as correctly said by Pon it dependents on the company policy. my company fixed it as 55% of gross.
From India, Bangalore
Singh.Shweta
13

Dear Seniors,
As I know that x%of gross is the basic,which mainly depends on the company policy,but in the above posts it has been mentioned X% of ctc is basic,which one is correct,pls do clarify.
I also need to know that,if ctc is given then how can we calculate the basic for a particular employee.
Rgds,
Shweta Singh

From India, Hyderabad
rajusiachen
22

No - there is no fixed percentage for Basic from CTC.
In the aviation industry in India, the line pilot earns almost 50 to 100 times of his basic pay! (A line pilot earns about 5 Lacs per month but, his basic pay is Rs 5000 - the rest is all allowances).
In most reputed companies, the Basic scale is linked to the position the employee is recruited - eg, the Basic Pay for a Asst Manager is same, irrespective of the department. However, the CTC differs from the job performed by the individual. For example, a technical manager may get more (or less) CTC to a marketing manager due PLI etc. But the pecking order for both (Manager designation) will be same as far as the company's hierarchy and promotions.
Rajusiachen

From India, Coimbatore
abdul.qm@gmail.com
singh.swetha fixing of basic in ctc it's mainly depends up on employer there is a limitation to fix basic in ctc it's min 35% to 70%. if we have to give ctc upto 150000/- so we have to set up basic as our employer. so remaining amount will be go for other allowances. i hope you will be understand my way of explaination.
From India, Hyderabad
Aparajita Krishnakali
Dear All, When one PF inspector came to our company a few months back he informed that basic salary should be minimum 50% of total CTC
From Canada, Yellowknife
fastanurag
4

usually when PF cases comes they may go upto maximum of 60% as basic for computation of PF contribution. Even there is no written guidelines in PF act and norm. But a commissioner may enforce 60%.
Upto 60 % he will win, so for the employees who are coming under PF range , may taken basic of 60% and less allowance and rest may be less than that i.e allowance more.
Further, standard 60% may be opted.

From India, Gurgaon
pon1965
604

without knowing the pay structure, it is difficult to comment. The basic should not fall below the min. wages. Pon
From India, Lucknow
Pratima Bhat
10

Dear Ganesh,
There is no such rule as to fix the percentage of gross as Basic. From both employee and employer perspective higher level of basic isn't efficient. As the basic increases so is the cost of the rest of the components which are related to Basic. The tax saving of the employee also decreases with lesser bifurcation of CTC into various components.
Fixing up of basic as percentage of the gross helps in bringing uniformity in the Compensation structure and fixing grades and levels.The average Basic maintained in comparison to the CTC as per current Industry standards is between 25% - 30 % in Service Sector and 30% - 40% in manufacturing sector.
Regards,
Pratima

From India, Mumbai
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