Labour Laws & Ir
Hr Officer
Hiten Parekh
Hr - Pharmaceutical Industry
Hrm, Ir & Adminstration
Labour Laws
Hr Generalist
+4 Others

Dear All team members,anyone can share rules & regulation (under section act) of percentage on basic salary.can i take 60% basic on gross salary in case (pf,esi,gt) is not include.Its possible or not.Please response on this.RegardsPankaj Sharma9871453233
Dear Pankaj, It is totally company’s discretion to fix a percetage of basic. U can take it as 60% of gross. Regards Sumiksha
That is different from company to company, If, suppose take higher percentage yours deductions is also is more. For Better one take 30% to 40%
Mr. Pankaj is asking from the members,the rules & regulation/ section of the Act which decides the minimum percentage for fixation of basic pay of total salary.
With Regards,

Hi all, The Basic Salary should be 50% of Gross Salary,HRA should be 50% of Basic salary,conveyance max Rs.800,Education Max Rs.500,Medical Max Rs.1250. Regards, Kamalakkannan.V
Dear Friends,
I feel following break-up is quite acceptable:
Basic = 50% of the salary in metro cities & 40% in non metro cities
HRA = 50% of the Basic salary
Conveyance = 800 per month
Medical Alloawance = 1250 per month
Education = It is based on employee grade
Performance commission = to balance off the gross
Dear friend,
There is no percentage fixed for calculation of basic salary, it varies from company to company, and their policies.However the percentages mentioned by my follow hr friends are mostly practiced.
Chander Mohan Mohla
hi! Please try to cover the minimum wages of the respective state . apart from this you can do as per your company policy. Regards Sanjeev Choudhary
Thanx to all Citehr members for your sugestions about basic salary. If you have any web link about labour laws then please reply me. Regards, Pankaj Sharma 9871453233 New Delhi
Dear Friends, Please see the attach excel file and send me reply asap. Thanks, With regards, NIRAJ J. SHAH

Attached Files
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File Type: xls DEFINITION OF WAGES.xls (13.5 KB, 949 views)

In my view Mr.Sanjeev Choudhary has given the correct answer to the query of Mr. Pankaj.
With Regards,

All the salary components are based on the benefit that the company can avail from taxation. Say for example company can avail 9600 per employee per year for conveyance. like that you have to check with accounts and taxation to solve your issues.
and more over if you are having higher basic wages the rate of statue debit will go high for your company . take this into consideration and fix the same.
Agree with Mr. Sanjeev Choudhary and Mr. R N Khola.

Basic salary should not be less than the minimum wages prescribed for the area in which the establishment is located.

As far as I know, minimum wages in most parts / states of India, are around Rs. 150 perday. Thus, basic salary should be Rs. 3900-4000 minimum. (fine adjustments to be made wherever required)

Apart from this there is no statutory guideline for determining basic salary. Please correct me if I am wrong.

Most of the answers provide details about break up of CTC. I think perception of highly paid executives, managers makes members to provide details of CTC break up where CTC per annum is Lakhs normally. Problem in such cases never arises about basic salary 'qualfitying' the minimum requirements.

For workmen category and junior level staff at times is the one which causes issues during statutory inspections. In very few organisations ensure that basic paid to lower level of employees is above the statutory guidelines.

- Hiten

as per law you can not bifurcate the minimum wage of the respective state, apart from this the percentanges mentioned above are in practice. regards rajesh
Basic + DA has to be 40% in non-metro cities and 50% in metro cities of total CTC
medical allowance can be Rs.1250 [as Rs.15000 pa is an exempted amount]
conveyance allowance can be Rs.800 [as Rs.800 pm is an exempted amount]
HRA has be minimum Rs.500 pm
all other figures can be adjusted according CTC be given after deducting above factors
Hello, I need the employee Basic salary percentage and HRA Percentage......... how to calculated. any one please send me.......
Dear Pankaj,

Coming to the Minimum wages act it contains three slabs where the employees are divided into:

1) Skilled

2) Semi-Skilled

3) Un-Skilled

Even the Minimum wages act veries from state to state & also type of the industry/company that are registered under Shops & establishments. u can directly get those details from net.

While discussing about the Basic pay, the ultimate desicion is taken by the Company with out crossing the minimum wages act.

The structure of the salary can be like this (example)

Basic salary : Rs X/- (kindly consider ever Rs X/- as basic salary)

HRA : Rs X/- * 40% (based upon the company discretion)

Proffesion development allowance : Rs X/- * 20%

Local Conveyance allowance : Rs X/- * 10%

Medical allowance : Rs X/- * 10%

Leave travel allowance : Rs. X/- * 10%

Employee PF Contribution : Rs X/- * 12%

Company CTC : Rs X/- * 202% { Performance pay or bonus or variable pay : Rs X/- 100% (this is optional based upon the industry) }


Employee PF Contribution : Rs X/- * 12%

Employer PF Contribution : Rs X/- * 12%

ESI (optional based on manpower or availability of ESI dispensary) : Rs X/- *4.75%

Gratuity (optional) : Rs. X/- * 5%
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