Is It Fair to Have a Basic Salary Below 30% for Employees Earning Over 26,000?

Dear All,

I have joined a Pvt Ltd company where 75-80 people are working. The salary range is between 10,000 to 45,000 per month, but the basic salary for all is 7,700 to have fewer PF deduction headaches. My concern is for people whose salary is above 26,000; their basic is below 30%. Is that okay? I have read previous threads, and as per my knowledge, the basic should be at least 30% or above. Please guide me on the same.

Thank you.

Hi,

There is no rule stating that Basic should be above 30%. Generally, companies will maintain the Basic at 40% or 50%, etc. However, for an employee who earns 45000/-, if the basic is less, there are chances that the PF department might raise a query for showing the basic as less. For some grades, 7700/- is less than the minimum wage set by the Minimum Wages Act, and that could be a problem.