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I had heard that as per the "new wage code 2022", the basic salary must be 50% of the gross salary. Can anyone send me the Government notification regarding this matter, that the same has been mentioned?
From India, Kochi

There is no such mention in the Labour Codes. In the Labour Codes the definition of wages has been made uniform for all the purposes. Even in the present scenario it is almost the same but under the new codes it has given a definition which is more confusing. The definition says that the allowances which exceed 50% of the basic salary will be added to your basic salary. This is a stupid definition because the allowances includes overtime also! That means in respect of an employee who earns overtime wages, the basic salary will keep on increasing....!

You can refer any of the New labour Codes for more clarification.

From India, Kannur

Probably you can take clue from the 'Minimum Wages' notified by the state govt(s) for different categories from time to time. In that schedule you can find basic, DA etc. applicable for any point of time.
From India, Bangalore

New Wage Code ( yet to be implemented ) has been defined Wages scientifically. Wages mean all remuneration payable to a person expressed in money and includes Basic , DA & RA.

It excludes items mentioned in (i) to (k).

But if the amount of exclusion under (a) to (i) is more than 50% of of the total remuneration payable under this clause , the excess amount will add back to Wages - Basic and DA or only Basic.

To calculate Basic wages it is essential to find out total CTC EXCLUDING ESIC, Gratuity, Insurance premiums etc. as mentioned in the definition and 50% of the same will be Basic.

As per definition no need for any circular. If the calculated Basic is less than notified Minimum wages, then minimum wages should be Basic.

As VDA is changed monthly / quarterly / 6 monthly etc. and accordingly Basic & DA is changed, similarly OT will be considered.

S K Bandyopadhyay ( WB, Howrah)
CEO USD HR Solutions
+91 98310 81531

From India, New Delhi

There is one small correction in above post. In paragraph (2) above it will be (a) to (k) instead of (i) to (k).

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

From India, New Delhi
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