Understanding Basic Salary Fixation: Is There a Rule on What Percentage of Gross Pay It Should Be?

Can someone tell me if there is any law or rule on the fixation of basic salary? What percentage of someone's gross salary should form the basic pay?

Hi, with reference to your above query, the basic amount actually varies according to the present minimum wages. Usually, you can consider 30% to 55% as the basic amount.

Mostly, basic fixation varies from company to company, with around 30-50% calculated based on the gross salary. Components like the following can be added according to your company's policy:

- Basic
- DA
- HRA
- Conveyance Allowance - Fixed (800)
- Medical Reimbursement - Fixed (1250)
- Education Allowance
- Food Coupon (based on company norms)
- Special Allowance

Regards, Sailakshmi

Thanks a ton, Nagesh and Sailakshmi, but I still have a doubt. My question is related to one of our outsourced agencies. They are offering approximately 15K in salary to their employees, and the breakdown of the salary shows 1K rupees as basic salary. This somehow feels wrong to me, but I don't have any substantial proof to ask them to pay at least 30% or 50% of the gross as basic.

I think he wants to pay a lesser amount towards PF, but you can ask him because for the gross salary, the basic should be between 30% to 50%. Kindly send me the salary details format so that I can guide you.

Regards,
Sailakshmi Hyderabad