How Do I Break Down Salary Components and Determine Basic Salary Percentile?

I have been assigned the task of preparing the salary structure for our employees. Could you please advise me on the criteria for categorizing the salary into components such as Basic, HRA, CA, etc.? Additionally, what percentile should I consider in order to determine the basic salary?

Thank you.

Salary Structure Components

- 40% - 50% of Gross Pay as Basic.
- 40% of Basic as HRA in the case of non-metros or 50% of Basic as HRA for metros.
- Medical Assistance: ₹1250/- per month maximum.
- Child Education: ₹100/- per child per month, maximum 2 children.
- Conveyance Allowance: ₹800/- per month maximum.
- LTA: As per company policy.
- Rest as Special Allowance.

Regards.

Yes, minimum wages apply. What is your industry type? Are you referring to the salary structure for staff or workmen?

Regards,
Pon

Ours is a non-banking financial company. I want to know whether the basic wage should be fixed according to the Minimum Wages Act. Please send me the minimum wages of Andhra Pradesh that would be applicable from 2012-2013.

Is it purely for tax reduction? Delete the "spl allowance" part; it's entirely taxable and a misnomer.