While bifurcating gross salary what will be the minimum percentage for fixing basic salary?

Dear Sir,

While bifurcating gross salary, what will be the minimum percentage for fixing basic salary? Please suggest with relevant rule.

Bifurcating can depend on whether he/she wants to contribute to PF or not.

For example, if a person has been appointed for Rs. 20000, then the breakdown without contributing to PF would be:
- Basic: 16000
- HRA: 3000
- Conveyance: 1000

In the case of wanting to contribute to PF, the breakdown would be:
- Basic: 15000
- HRA: 3000
- Conveyance: 2000

Thank you, Pankaj ji.

My question is regarding employers who pay higher wages to their employees but set a very nominal basic salary to reduce PF liability. Is there a minimum fixed percentage for determining the basic salary?

Sir,

There is no hard and fast rule for the fixation of basic salary out of the gross salary. However, the general rule is that the basic salary should not be less than the minimum wage set by the respective state governments.

N. Lokanadha Babu
Manager-HR