Is There a Rule for Minimum Basic Salary Under Karnataka Shops Act?

Hi all,

Can anybody guide me on whether there is a government guideline under the Karnataka Shops and Commercial Establishments Act for the minimum basic salary? Here, I am not referring to minimum wages. The question pertains to the minimum basic salary for employees. What percentage of the total salary should be allocated as basic salary? Is there a rule stipulating that the minimum basic salary should be 50% of the total or gross salary?

Thanks,

In my opinion, the Act does not speak about the quantum of basic salary.

Basic salary is an integral part of minimum wages. Mr. Gera rightly said, the quantum of basic salary isn't scripted in the act.

Dear Srinath Sai Ram,

In my opinion, the basic salary should be 60% of the total wages, with 20% allocated to HRA and the remaining balance for other allowances.

K. Jayaraman

As per the law, you need to follow the minimum wages applicable to your state. There is no other specification of a percentage to be followed for the basic in gross salary. Also, it is mostly followed in the market to take an average of 50-60% of the gross salary while calculating the basic salary.