Out Sourcing
Ragavendra Rao
Private Ltd Establishment
+10 Others

Is the Basic 60%must on the Gross or we can calliculate 30% please help me the Basic calliculations please
2nd February 2011 From India, Bangalore
The basic can be max of 35 % from the and cannot go fromm that,
if you want you can mention it as additional or special basic which will be be accounted for statutory calculations like PF,ESI,Gratuity, etc.....
2nd February 2011 From India, Madras
If it really into 60 % you must think of teh Income tax which you will not get exempted and cannot take advantage of HRA even if you have the rent receipt
and also to look afeter that the total crosses 6500 you are not eligible for Bonus, may be one of cause, so that you can fix excratia, as decided by employer
also the advantage for the organisation in showing the previlages to get banking loans
3rd February 2011 From India, Madras
Dear Sir,
You can fix basic salary according to your convenience or giving employees income tax benefits but it is mandatory that basic should not be less than minimum wages of the state.
3rd February 2011 From India, Mumbai
Sub: How to make a salary slip
Dear Sir,
I am new this site and i can get some help for you seniors.
So Please I have one confusion that my company is M.K Cooling towers pvt ltd. Manufacturing.
and workers have do work monthly basis and extra time work.
please help me How to make Payment for the all workers with Over time include.
3rd February 2011 From India, Delhi
Hi, Please refer to the minimum wages (State wise and Zone wise) for fixing the Basic Salary and it should not be less than the wages fixed by the Government.
3rd February 2011 From India
Dear All;
Calculation of basic in case of worker that the daily basic wages notified by the central/state govt which is applicable multiplied by the total month i.e. 30 standered its becomes the basic wages and other aloowance are extra. in case of staff between 30 to 35 % of CTC.
Neeraj Shrivastava
Manager HR
ITD Cementation India Limited
4th February 2011 From India, Mumbai

To my knowledge the basic pay should be minimum 30% (State wise minimum wages) of the gross. However, it is in the hands of the HR or accountant to decide and give the recommendations to the management looking at the merits and demerits of fixing the slab in a company.

Fixing a basic pay to the minimum of 30 % has certain demerits and if the slab is increased more than 30% also has some demerits. Such as:-

1) If the basic pay is less, then the deductions towards the provident fund from the employee’s portion will be less.

2) If the basic pay is less ,then contributions from employer’s end on contributing on Provident fund will also be less.

3) Calculations during full and final settlement for an employee will be less.

4) Eligible for bonus if the basic is below 6500/-

Similarly if the Basic pay is more than 30% then it leads to getting into the taxable bracket without any exemptions towards HRA, etc…

Hence, I would suggest to have the slab fixed based on the salaries giving in the company. If maximum # of employees fall under the bracket of tax then better to go for 30% and if it is other wise then increase it as per the need and fix the slab.

However, if this question is raised just to gain the knowledge then, these are the +ve and –ve results of having a high % on basic pay and low % on basic pay.

Hope this helps you.


4th February 2011 From India, Hyderabad
As per my knowledge the standard salary breakup is.....
Basic: 50% of Gross Salary but not less than Fixed Minimu wages of respective state govt.
HAR: 40% of Basic Salary
Conveyance: Max Rs.800 or 10% of Basic for getting IT benefit
Medical: Max Rs.1250 or 10% of Basic for getting IT benefit
Other/ Special Allow: Remaining / balance amount can add to other or special Allowance.
Expecting your valuable suggestions and feedback.
Thanks and Regards,
Harish Kumar.K.S
Mob: 9986839169
4th February 2011 From India, Bangalore
it think labour deptt releases minimum basic wages which means gross minimum should be not less then recommended however the basic can be lower but shouls be atleast 60% of basic minimum wages . pls correct if i am wrong
Anil Rathi
4th February 2011 From India, Mumbai
we are floting a private limited company inthat i want to fix salaries to Carpainters,Arcitects,Interial Designers soplease advice me to devide the salary as per labour law.
Interial Designers--Salary--30000Rs
4th February 2011 From India
Reddy, Please find the attached salary breakup in excel format, I hope it may helps you. Regards, Harish Kumar.K.S Mob:9986839169
5th February 2011 From India, Bangalore

Attached Files
Membership is required for download. Create An Account First
File Type: xls Salary Breakup.xls (36.5 KB, 1330 views)

dear sir/madam
Am vishwanath from bengaluru, i have to know about esi percentage on what basis should calculate. is that standard amount or variable. cause in our company they are deducting ESI as my total drawing of net salary. am drawing around 10k to 15k its variable. my esi deduction amount is min Rupees.185/-. some time it crosses 750/-.
so please anybody tell me whether esi deduction is standard or variable.
1st August 2011 From India, Pune
i would like to know the calulation of leave an cashment how do we calculate this.
22nd February 2014 From India, New Delhi
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™