Indian Labor Act that specifies how to design the salary structure?

Is there any Indian Labor Act that specifies how to design the salary structure?? one of my employee asked me the question that on which basis you decide the basic salary % of gross CTC. so just want to know is there any specification in Law that specify what should be the % of CTC as basic salary?

Hello Kartik,
As per my opinion there are no such acts available for designing any salary structure.Only Minimum wages act is available to define minimum wage of employee's.
Main purpose of Salary structure is to give maximum tax benefits.You can use any tax saving salary heads to give maximum tax benefits.
Regards,
Ashish