If you do have the time and patience to peruse the similar threds already available on the same issue, you will certainly understand that there is no hard and fast rule nor any straight jacket formula to divide the gross salary of an employee into different components.
But care must be exercised to see whether the particular post/job is covered by the Minimum Wages Act, 1948 and minimum rates of wages have been fixed and the componential structure is similar to your industry wage structure. Besides, you have to take into account the periodical cost of employer's contributions to such statutory social security components like EPF, ESI, Gratuity etc., and other indirect commitment like statutory bonus.
Similarly, it is also important to compare the prevailing wage structures of the same or similar post in the same or similar type of industries in the region.
Therefore, you may devise the structure in such a manner that the sum of basic and dearness allowance constitutes not less than 70% of the total salary package.
23rd February 2019 From India, Salem
sumit kumar saxena
24th February 2019 From India, Ghaziabad
The basic wages of the concerned employee would be as per the skill category and refer the rate of minimum wages of your state to calculate. Show the balance amount against daily allownce. The EPF shall be made under the basic wages earned. Whereas the ESI to be calculated on gross of 15000. The gratuity also calculate under the basic.
26th February 2019 From India, Mumbai
#AnonymousPlease give me the clarity on New PF SC Judgement. Wat is the effective date for iplementing.
Yesterday From India, Vijayawada