Understanding Minimum Basic Salary in Gujarat: How Is It Calculated from CTC?

What is the minimum basic salary in Gujarat? How is the percentage calculated from CTC?

Regards,
Mittal Patel

It is common practice to set the basic salary at 40% to 60% based on location and other factors, with the rest of the salary being distributed as different allowances according to company policy. The key consideration is to set the basic salary plus DA in a way that reflects and aligns with the minimum wages prevailing in your state or industry for the given period. This point should be kept in mind when framing the CTC.

Benefits of Keeping Basic Salary Above Minimum Wage

The main benefit of keeping the basic salary above the minimum wage is the increased contribution to PF from both the employee and employer sides.

I hope this is clear, and please feel free to ask any further queries.

Thanks & Regards

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Sagar Gulani
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