Dear Seniors,
As I know that x%of gross is the basic,which mainly depends on the company policy,but in the above posts it has been mentioned X% of ctc is basic,which one is correct,pls do clarify.
I also need to know that,if ctc is given then how can we calculate the basic for a particular employee.
Rgds,
Shweta Singh
No - there is no fixed percentage for Basic from CTC.
In the aviation industry in India, the line pilot earns almost 50 to 100 times of his basic pay! (A line pilot earns about 5 Lacs per month but, his basic pay is Rs 5000 - the rest is all allowances).
In most reputed companies, the Basic scale is linked to the position the employee is recruited - eg, the Basic Pay for a Asst Manager is same, irrespective of the department. However, the CTC differs from the job performed by the individual. For example, a technical manager may get more (or less) CTC to a marketing manager due PLI etc. But the pecking order for both (Manager designation) will be same as far as the company's hierarchy and promotions.
Rajusiachen
singh.swetha fixing of basic in ctc it's mainly depends up on employer there is a limitation to fix basic in ctc it's min 35% to 70%. if we have to give ctc upto 150000/- so we have to set up basic as our employer. so remaining amount will be go for other allowances. i hope you will be understand my way of explaination.
usually when PF cases comes they may go upto maximum of 60% as basic for computation of PF contribution. Even there is no written guidelines in PF act and norm. But a commissioner may enforce 60%.
Upto 60 % he will win, so for the employees who are coming under PF range , may taken basic of 60% and less allowance and rest may be less than that i.e allowance more.
Further, standard 60% may be opted.
Dear Ganesh,
There is no such rule as to fix the percentage of gross as Basic. From both employee and employer perspective higher level of basic isn't efficient. As the basic increases so is the cost of the rest of the components which are related to Basic. The tax saving of the employee also decreases with lesser bifurcation of CTC into various components.
Fixing up of basic as percentage of the gross helps in bringing uniformity in the Compensation structure and fixing grades and levels.The average Basic maintained in comparison to the CTC as per current Industry standards is between 25% - 30 % in Service Sector and 30% - 40% in manufacturing sector.
Regards,
Pratima
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