Vini The Best
Executive Hr
Human Resource Team

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
I am very confused about basic amount of CTC, is there any law regarding basic amount, how to fix basic amount - is there minimum or Maximum boundary for basic amount, on which basis the amount of basic to be fixed. Please help me.
From India, Durg
This is a total "Cost to the Company" for engagement of an employee. The cost includes Basic salary, House rent allowance, conveyance allowance, management contribution on ESI & PF and annual payment of Medical allowance, Leave Travel Allowances, Superannuation payable to LIC if any and some cases Gratuity payable after continuous period of 5 years.
Present scenario, it is called "Pay Basket" ( total cost figure, the Company could incur due to that employment). during perks deciding time, after selection process are over. Some multinational gives the chance to decide how much to be in each head, for the newly recruited them self to consider.

From India, Madras
Normally the Basic Pay is decided around 55 to 60 percent.
From India, Madras
Generally, it is 40% to 50% of CTC (Cost to Company). Statutory components like PF, bonus, gratuity and other benefits like LTA are calculated based on this amount. Hence increase or decrease in basic salary may impact CTC of an employee.
From India, undefined
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™