How To Calculate Basic Doc Download

Hi Everyone
I am working as a HR Executive in a private company. I am new to the post recruitment. As a HR I would like to know how to calculate the Basic from Gross salary. Kindly do me the favor and i am ready to learn the new things
Regards
Latha Jayachandran

Hi Ms. Latha
As per any act there is no rule to fix the basic wages form gross. We give bifurcation just to reduce the tax burdens from Income Tax & other admin charges to the employer. Usually basic will be around 50% on the gross. More over Everyone should ensure as Basic wages is equal or higher than the Minimum Wages act.

Hi
I an sharing the salary split for your reference. Just explain me the process how the Gross & Basic pay are correlated.
Regards
Latha.J

Hi Latha
You make Basic as 50% form the grosss pay
HRA as 50% from Basic
Conveyance as 800
Med All as 1250
Aspecal allowance - rest
so normally Basic will be around 50-60% on the gross pay