Salary Breakdown Dilemma: Can We Legally Pay a Lump Sum Without Itemizing?

Dear Seniors,

Is a Salary Break-up Necessary Legally?

Can we pay a consolidated amount, say Rs. 15,000/-, to an employee without any breakdowns like Basic, HRA, Allowance, etc., and pay PF, ESIC, PT on Rs. 15,000/-?

If a salary break-up is necessary, can you guide me regarding which law or rule states this?

Regards

Determination of Wage or Salary

Determination of wage or salary is ordinarily an issue of demand and supply prevailing in the employment market. However, in organized sectors, it is a matter of collective bargaining between the labor and management. Of course, legal restrictions are there regarding the periodicity, mode of payment of wages, and deductions, if any, to be effected, equality of fixation and payment of remuneration for equal work irrespective of sex, and fixation and payment of wages not below certain rates statutorily fixed and revised periodically in respect of certain employments.

Wage Structure and Legal Requirements

As far as my knowledge goes, there is no law prescribing a specific wage structure. Again, it is a matter of accounting as well as administrative convenience and discussion between the employer and the employed. Only the indirect monetary commitments of the employer, such as contributions to PF, ESI, Bonus, Gratuity, etc., normally result in breaking up the total wages into various components like basic, dearness allowance, HRA, and the like.