Clarification on Minimum Percentage of Basic Salary
Is there any provision in the statute that provides clarity on the minimum percentage of basic salary other than the Minimum Wages Act? For example, we practice basic as 35% of the CTC. I would appreciate your valuable suggestions on the same.
Warm Regards,
Jack
From India, Mumbai
Acknowledge(0)
Amend(0)
3Is there any provision in the statute that provides clarity on the minimum percentage of basic salary other than the Minimum Wages Act? For example, we practice basic as 35% of the CTC. I would appreciate your valuable suggestions on the same.
Warm Regards,
Jack
From India, Mumbai
Acknowledge(0)Amend(0)
As per our statutory regulations, they do not follow a CTC structure. It is a practice in the corporate world. According to industry standards, the basic salary ranges from 30% to 50% of CTC. Therefore, what you are practicing is absolutely fine. Just ensure that the basic salary is never less than the minimum wages.
Regards
From India, Mumbai
Acknowledge(2)
Amend(0)
Regards
From India, Mumbai
Acknowledge(2)Amend(0)
I am fully agreed with Prasenjit. Generally most of the companies are implementing 40% as basic. But you can choose from 30% to 50%, but again it should not be less then minimum wages.
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Legal Position:
If the notified Minimum Rate of Wages consists of basic + dearness allowance and if any employer does not pay dearness allowance and also the basic is less than the prescribed MW rates but the gross wages are equal to or more than the minimum wages prescribed, then it will be deemed to comply with the Minimum Wages Act. This is considered lawful based on the judgment pronounced by the Supreme Court in the Airfreight case.
Regards
From India, Kolkata
Acknowledge(0)Amend(0)
If the notified Minimum Rate of Wages consists of basic + dearness allowance and if any employer does not pay dearness allowance and also the basic is less than the prescribed MW rates but the gross wages are equal to or more than the minimum wages prescribed, then it will be deemed to comply with the Minimum Wages Act. This is considered lawful based on the judgment pronounced by the Supreme Court in the Airfreight case.
Regards
From India, Kolkata
Acknowledge(0)Amend(0)
Dear Abhijit, as far as my knowledge goes, minimum wages cannot be broken into components. They basically represent the basic pay. Could you provide any notification, judgment copy, or any government document showing this?
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
dear, there is no any specification to fix the basic but generally the industries keep the basic minimum wage or 40% to 50% of gorss or ctc which is higher. regards satish
From India, Chandigarh
Acknowledge(0)Amend(0)
From India, Chandigarh
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Salary structure CTC 15000.xlsx
Minimum Wage of UP & UK.pdf