Korgaonkar K A
[email protected]
Payroll & Labour Compliance
[email protected]
Commercial Manager
+2 Others

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Often one question is asked that what is the percentage of basic salary because there is no clarification some say basic salary should be 60% on gross remaining 40% can be fabricated in HRA, CCA and other allowance.
Few say there is no specific rule that basic salary should be 60% they decide 40,45, and 50.
Therefore please clarify this confusion is there any central/state govt or as per act rule in private sector basic salary should be 60% is there any notification if any please attach.

From India, Delhi
I don't think there is any such government rule.
As per my experience, most of the private companies (MNC) keep the basic salary high as opposed to private companies (Indian). Indian companies mostly keep the Basic at about 30-40% of total CTC (Cost to company).
It depends on company's individual policies.

From India, Delhi
In minimum wage, there are no too many components. Total wage is basic pay. Hitherto at least two components ie basic and living allowance were there. Now, it is one for all purposes. I hope, you are debating with regard to IT personnel and with reference to CTC
From India, Nellore
For CTC people, the higher % of basic means, the higher terminal benefits and higher savings thru PF and higher HRA for tax planning purposes. Pon
From India, Lucknow
Dear All
There are no rules regarding fixation of basic percentage but it should be reasonable and fair.
When a state govt declare MW, he declare with components and no one are allowed to bifurcate further the components i.e when state govt says MW shall be in two part as basic and da or vda then employer can not alter MW value in three components.

From India
malikrg said it rightly. There is no law on percentage of basis to Gross or CTC. However, it should not be less than minimum wage rate as applicable to the concern employee.
From India, Mumbai
I Also agree with all that there is no provision of fixation of basic salary ,it depends upon company to decide,but basic as major part of minmum wages so that it should not be less than minimum wages
From India, Delhi
In my company.at the time of increment we never rise in Basic,those who have affected for MIn.wages,we increase
their Basic as per min. wages Act for that particular year.we are the dealer and comes under Shops & establishment
Act.Is it ok.pl.advice.
Jayant Nisal

Multitech Hydrosystems

From India, Pune
what should be basic salary % against gross salary as per govt. ruls
From India, undefined
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