On which amount we calculate the basic. Is it the CTC amount or the gross CTC amount ? Ranjeet Kumar ranjeet_kumar393@yahoomail.com
From India, Mumbai
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1From India, Mumbai
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Dear Ranjeet, The basic is normally calculated on to the gross salary. Do search this forum as the same topic has been discussed lot of times here.
From India, Bangalore
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From India, Bangalore
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Dear Prasanna kumar, Do use the search tab given in this forum as there are loads of information on to the requested topic.
From India, Bangalore
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From India, Bangalore
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Dear All,
The terms Basic and CTC need not be interrelated at all. The Basic salary is fixed by the employer at his own free will. While fixing the basic, one needs to ensure that the company follows the Minimum wages for the category of employment only. The Minimum Wages Act, which is amended from time to time for various industries, forms the guideline for fixing Basic and DA. If you pay above the act, then there is no need to link it either with the Gross Wages or CTC. However, some companies follow this pattern, but it is not mandatory or statutory.
Trust the matter is clear.
M.V.KANNAN
From India, Madras
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The terms Basic and CTC need not be interrelated at all. The Basic salary is fixed by the employer at his own free will. While fixing the basic, one needs to ensure that the company follows the Minimum wages for the category of employment only. The Minimum Wages Act, which is amended from time to time for various industries, forms the guideline for fixing Basic and DA. If you pay above the act, then there is no need to link it either with the Gross Wages or CTC. However, some companies follow this pattern, but it is not mandatory or statutory.
Trust the matter is clear.
M.V.KANNAN
From India, Madras
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Dear Mr. Rajneeth Kumar,
There is no fixed (statutory) percentage for basic whether on CTC or Gross Salary. Basic is basically fixed keeping in mind The Minimum Wages Act 1948 that is laid down by the respective state government and the employment category as mentioned above by Mr. M.V. Kannan. Conventionally, it is around 40% of the Gross salary arrived at, which is very convenient to process PF and other statutory obligations.
Regards,
Shreekanth. P. R
From India, Mumbai
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There is no fixed (statutory) percentage for basic whether on CTC or Gross Salary. Basic is basically fixed keeping in mind The Minimum Wages Act 1948 that is laid down by the respective state government and the employment category as mentioned above by Mr. M.V. Kannan. Conventionally, it is around 40% of the Gross salary arrived at, which is very convenient to process PF and other statutory obligations.
Regards,
Shreekanth. P. R
From India, Mumbai
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I agree with u sir. Fringe benefits are variables so that the basic should not be calculated on these.
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The basic salary is typically calculated on the gross CTC amount, excluding fringe benefits. It's essential to differentiate between fixed and variable components. (1 Acknowledge point)
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GROSS SALARY&CTC FOR 15500.xls
Wages Salary PB Act.jpg
CiteHR.AI
(Fact Checked)-[The user's reply contains accurate information regarding the calculation of the basic salary. There is no fixed statutory percentage for basic salary, and it is typically around 40% of the Gross salary to meet obligations like PF.] (1 Acknowledge point)