Good Evening All
"the range for basic will be anywhere between 30 to 50%, Reason why it make sense to keep it at 50 vs 30, is that minimum wage is based on the basic rather than the gross. So as minimum wage increases, you do not want to be forced into increasing the overall wages for lower income employees, the higher the basic, the higher the buffer, in addition, for employees who fall into tax bracket, the HRA tax exemption will be lowered if the basic is lowered, this by having a higher basic, their tax savings also increase."
Above message received from one guy, i just want to confirmed that is it true? any suggestions????
"the range for basic will be anywhere between 30 to 50%, Reason why it make sense to keep it at 50 vs 30, is that minimum wage is based on the basic rather than the gross. So as minimum wage increases, you do not want to be forced into increasing the overall wages for lower income employees, the higher the basic, the higher the buffer, in addition, for employees who fall into tax bracket, the HRA tax exemption will be lowered if the basic is lowered, this by having a higher basic, their tax savings also increase."
Above message received from one guy, i just want to confirmed that is it true? any suggestions????