Minimum Wages comprise of a Basic rate of wage and Dearness Allowance (which will be variable according to changes in the cost of living index announced by the Department of Economics and Statistics)
Apart from the above there is no specific rule that Basic should be 70% or 35% of gross salary. It is to be structured according to the convenience of the employer and employee (as he has to bear Income Tax on his earnings). In any kind of salary structure the basic salary will take the base for the entire thing (hence it is "BASIC SALARY) and DA, HRA, CCA etc will be calculated as percentage of the given Basic Salary to reach the Gross Salary. Only thing to be aware of is to ensure that you are not paying a gross salary less than the minimum rate of wages fixed by the appropriate government.
Regards,
Madhu.T.K
Apart from the above there is no specific rule that Basic should be 70% or 35% of gross salary. It is to be structured according to the convenience of the employer and employee (as he has to bear Income Tax on his earnings). In any kind of salary structure the basic salary will take the base for the entire thing (hence it is "BASIC SALARY) and DA, HRA, CCA etc will be calculated as percentage of the given Basic Salary to reach the Gross Salary. Only thing to be aware of is to ensure that you are not paying a gross salary less than the minimum rate of wages fixed by the appropriate government.
Regards,
Madhu.T.K