Understanding Salary Break-Up: What's the Minimum Basic Salary Set by the Indian Government?

Dear All,

I am new to this forum. I need your kind support. I have a question regarding salary break-up. How much is the minimum basic salary fixed by the government of India? Is it 30% of the gross salary?

Regards,
Madhu

Government of India performs forward calculation, starting from the Basic salary. The pay scales are fixed, and the Basic salary originates from that Basic amount. Other allowances/components of the salary follow. The Government of India does not engage in salary negotiations.

In private organizations, they conduct backward calculations from CTC as they appoint based on salary negotiation. Hence, both methods cannot be compared.

Dear Madhu,

In CTC Salary Distribution will be:

(A) Basic Salary + HRA + DA
(B) Conveyance + Medical + Other/Special Allowance if any
(C) Employers' Contribution for PF (12% of Basic)
Employers' Contribution for ESIC (4.75% of Gross)
(D) Employees' Contribution for PF (12% of Basic)
Employees' Contribution for ESIC (1.75% of Gross)

Gross Salary = (A) + (B)
CTC = (A) + (B) + (C)
Net in Hand = (A) + (B) - (D)

Salary breakup as follows:
Basic - 30%
HRA - 30%
Conveyance - 25%
Medical - 10%
Other - 5%

Hope this might help you.

Chikk chik...

Regards,
Ana

It is desirable to ensure that the basic pay plus DA is not lower than the minimum wages prescribed by the State Government. The mandatory contribution is based on the basic pay plus DA. In other words, the basic pay should be (basic pay + DA) - DA (as prescribed by the State Government for that year).

S. Krishnamoorthy

Dear All,

Kindly let me know the proper breakup of gross monthly salary in the private sector with the help of a table. Please revert to me soon.

Regards,
Prachi

Dear Admin, I am currently working in a leading automobile company in Japan, but I am planning to relocate to India. My future company is requesting my salary breakdown, but I am unfamiliar with the Indian salary system. Could you please assist me in this matter? Additionally, I prefer not to disclose my current salary to my future employer.

My Gross Income Details

- Basic: 150,900 yen + 80,000 yen
- Overtime: 1.40 times the normal hourly rate (earning between 80,000 to 90,000 yen per month)
- Holiday working allowance: approximately 13,000 yen per day worked
- Commuter allowance: as needed for train transportation from home to the company
- Dependent allowance: currently 0 yen as I am single, but will change if I get married

Deductions Include

- Income tax: 4,740 yen
- Resident tax: 7,800 yen
- Health Insurance: 10,080 yen
- Pension: 20,544 yen
- Employment insurance: 1,213 yen
- Property tax: 2,050 yen
- Asset-building savings: 1,000 yen
- Lunch costs: 8,000 yen
- Union fees: 1,468 yen
- Dormitory fees: 9,148 yen

How can I provide a salary breakdown without revealing my actual salary? Your assistance is greatly appreciated.

Thank you very much.

Regards, Nuzhat Nishi

Is 35% of gross as a basic amount applicable?

Thanks and Regards, Debasree Ghosh