Dear All,
Can any one guide me on
Normally industry standard says % of Basic pay shold be 40% -45% of gross salary, but some companies aslo take 60%-70% of GS ( though I know there is no such fixed rule as per law on Basic pay)
1.My question is if we take less percentage of basic what will be the benefit to employee?
1. Benefit to employer - less PF contribution to be made.
2. Benefit to Employee - ?
Is HRA linked to basic pay like lower the basic - more deduction employee can get on HRA...
2.What is HRA % - I know it is 42% - 45%- I am correct
For Eg: if gross salary is 10000
Basic (40% of Gross) : 4000
HRA ( 42% of Basic) : 1680
Please guide me on the percentages...as I am designing the salary breakup for construction chemicals company.
regards
Priyanka
Can any one guide me on
Normally industry standard says % of Basic pay shold be 40% -45% of gross salary, but some companies aslo take 60%-70% of GS ( though I know there is no such fixed rule as per law on Basic pay)
1.My question is if we take less percentage of basic what will be the benefit to employee?
1. Benefit to employer - less PF contribution to be made.
2. Benefit to Employee - ?
Is HRA linked to basic pay like lower the basic - more deduction employee can get on HRA...
2.What is HRA % - I know it is 42% - 45%- I am correct
For Eg: if gross salary is 10000
Basic (40% of Gross) : 4000
HRA ( 42% of Basic) : 1680
Please guide me on the percentages...as I am designing the salary breakup for construction chemicals company.
regards
Priyanka