Re: CTC Calculation - CiteHR
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Hello seniors, I want to know whether the percentage of allowances are calculated from Basic or D.A Thanks Pria
Hello Pria,
As a general rule percentage of allowances are calculated from Basic.
Plenty of material related to CTC is already posted in Cite HR.
Please type CTC in the FIND INFORMATION box that you see above
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V.Raghunathan

Thank u so much Sir actually I posted wrongly i.e whether it should be calculated from basic or from gross salary.will follow your instruction and see it
allowance is on Basic only and some remained fixed as per decided scale like Professional development allowance.
DA is separate from Basic and in the industry, it is also taken as Consolidated Basic.As mentioned in I D Act,1947, D A depends upon the place of posting of an employee and as per Supreme Court view, all categories of staff getting the same wages and posted at one place should be given the same scale o D A irrespective of the fact that they are working as clerks or member or subordinate staff or factory workmen;
On Basic, Scale of the pay should be determined after taking into consideration the nature of the work done, capacity of the industry to pay and other similar factors; whether employer is able to make profit or not has no bearing on the question of proper wages of a workman.
To determine the proper basic wages of a workman a comparison with the rates obtaining in similar business of the locality is useful.

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