Understanding Basic Salary: How to Calculate It and When It Should Be Revised?

Hi,

Can anyone explain how to determine the basic salary from our gross salary? Also, when should our basic salary be revised - is it along with the yearly increment or after a certain period?

Uma

Hi Uma,

Basic salary may vary from 25% to 60% of your gross. It depends on the company's salary structure, how they have structured the salary breakdown, and what benefits they are providing. Yes, during increments, the basic salary should definitely be revised.

Regards,
Amit Seth

To add to Uma, can someone tell me for what kind of companies the basic salary should be 60% of the gross?

Regards,
Santosh Verma.

Dear Santosh,

There are many companies paying such high basic salaries. I know of a major textile company with the following salary structure:

- Basic: 9000
- HRA: 3150
- Conv: 825
- Spl All: 750
- Med: 250
- LTA: 225
- Gross: 14200

As you can see, the basic salary alone exceeds 60%. The actual percentage may vary depending on the company's policy.

Regards,

Amit Seth