Is This Salary Breakup of Basic, DA, and HRA for a New Employee Compliant?

Salary Breakup for New Employee

New employee joined with a salary of $17,000. Can we show Basic + DA = $15,001 and HRA = $1,999, totaling $17,000 as a breakup? Is such a salary breakup allowed?

Employee Benefits and Compliance

The employee is a fresher, and since he is above the PF bracket, the firm decided to provide him only with ESI. Is everything correct, or should there be any amendments?

It is okay as it complies with the ratio of apportionment of the basic component in the wage structure as per the definition of wages under section 2(y) of the Code on Wages, 2019, likely to be effective from April 01, 2021.

Salary Breakup Consideration

Below breakup is considered:

Basic + DA + HRA + other benefits = 21,005 (gross).

So, is the employee covered by ESIC, or do we only deduct PF and PT rather than PF, PT, and ESIC?