Regarding Basic Salary [Thread 563973]

Dear Seniors,
My Company Is A Limited One, Can I Put All The Gross Salary In Basic Only.. I.E. Employee Salary Is 16000 So Can I Show His Basic Salary As 16000 Without Seggregating Into HRA ,Medical/Conveyance Allowance.
Kindly Suggest = Basic Can Be 100% Of Gross Salary Or Not
Posted 8th June 2016
pls help me out ...

Hi,
yes you put 16000 basic salary allowance like HRA, Medical, convenyance is not statutory liability however if employee is eligible for bonus/gratuity etc. then No shall be differ
for example... basic 16000
Bonus 8.33% of 7000 583/-
Gross salary 16583/-

Dear Rits ,
It is mandatory to show D.A. ,HRA 5% Mnimum .
This is as oer the law .
Regards

It is advisable to constitute salary as basic & allowances. In Maharashtra & WB HRA is mandatory. Mandatory or not, HRA should be one, conveyance allowance should be other. If you pay the whole salary as basic you will pay higher gratuity if such employee completes 5 years of service. Include few allowances along with basic salary.