Is Basic Salary Really Required to Be 50% of Gross or CTC in Andhra Pradesh?

Dear All,

Is it mandatory, or is there any rule which states that the Basic Salary should be 50% of Gross or CTC? I belong to Hyderabad, Andhra Pradesh. Can somebody help me out in this regard in line with the AP Shops & Establishments Act or AP Labour Act?

Hi Krishna,

It is not mandatory that the Basic Salary should be 50% of Gross or CTC. Please read the MOA & AOA and also the policy & procedures of the company. Ideally, the range of basic salary is 30% to 60% of the Gross salary. However, it also depends upon the company's policy.

Hope this helps you.