Is It Normal for Net Pay to Be Much Higher Than Basic Salary in Staff Roles?

Inquiry About Salary Structure

This is Kandarp. I have recently joined a new company and came to know that an employee is earning a net pay salary of 12,000, but his basic salary is only 3,000/-. Is this situation acceptable or true as per HR rules? The employee is in a staff position.

Please provide me with an answer at your earliest convenience, along with the relevant section number.

Thank you.

Regards,
Kandarp

Hi Kandarp, it may be useful for your expectations. You can review it below:

Salary Structure Details

Salary Head (CTC) = 12,000
Basic @ 40% of CTC = 5,000
HRA @ 50% of Basic = 2,500
Conveyance = 800
Medical = 0
CCA = 955
Special Allowance = 1,612
Incentive = 0
Gross = 10,867

Employer Contribution

PF Co. Cont. @ 12% = 600
ESI Co. Cont. @ 4.75% = 570
Bonus @ 8.33% = 292
Gratuity @ 4.81% = 241
CTC = 12,570

Employee Deductions

PF Emp Cont @ 12% = 600
ESI Emp Cont @ 1.75% = 210
P.Tax = 0
In-Hand Salary = 10,267

Regards,
G. Mallikarjun

Ashish replied correctly. You will give minimum wages of the state, then any other head. Hope it will help you.

Regards,
Dev

There are 5 members whose PF deductions are based on their Basic Salary, while others are capped at the ₹6,500 limit. Now, the company wants to change the PF deduction from the basic salary to the ₹6,500 ceiling limit. Is this change legally possible? Please provide me with the right direction for the same.

Thank you.