Hai all, Requesting a query regarding basic salary calculation. Is it a rule that 40% or 50% of gross pay is basic salary?. Kindly clarify , if any one can help me.
Hi
There is no any rule as such as basic is 40% or 50%. It is calculated as 40% or 50% & rest is paid as other allowances just to reduce the Income tax to Employee & to reduce the overheads by the employer
Thank you for your valuable information. Is this basic salary fixing percentage is the discretion of the company? or it must be 40 or 50%. Kindly clarify.
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