Dear Colleague,
It is suggested to align the structure with the proposed " wage" definition under the Code on Wages 2019 if your organization is ready to do that.
As per the new definition proposed 3 components - Basic, DA, Retaining Allowance if any are to be 50% of the total CTC or total Components
Remaining 50% may be distributed to the other heads like HRA and Statutory aspects like PF, ESI, Gratuity, Bonus and so on in the CTC structure in line with the Statutory % stipulated under the relevant provisions. You may create a standard template for your use.
PF is 12%
ESI is 4.75%
Gratuity @ 15 days of Basic, DA, Retaining Allowance
Leave Wages
Bonus and so on
All the Best, God Bless,
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu