what is the formula to fix a basic salary of the gross salary, means who much % of the Gross Salary would be a Basic Salary for Construction industry.
From India, Delhi
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From India, Delhi
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Dear Shukla,
To my knowledge, Basic determines 50% or 40% of Gross Salary. There is no standard formula to fix Basic; it differs from company to company. We can fix it according to our company policies. As per statutory norms, Basic plays a major role in calculating P.F, H.R.A (House Rent Allowance), and Gratuity, etc. Therefore, while giving a breakup of salary, we have to consider these statutory obligations as they are very important to the employee.
In conclusion, there is no standard formula for fixing Basic. As mentioned before, it varies from company to company; generally, it is fixed at 40% to 50% of the gross salary.
I hope this clarifies things for you.
I wish you all the best.
From India, Hyderabad
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86To my knowledge, Basic determines 50% or 40% of Gross Salary. There is no standard formula to fix Basic; it differs from company to company. We can fix it according to our company policies. As per statutory norms, Basic plays a major role in calculating P.F, H.R.A (House Rent Allowance), and Gratuity, etc. Therefore, while giving a breakup of salary, we have to consider these statutory obligations as they are very important to the employee.
In conclusion, there is no standard formula for fixing Basic. As mentioned before, it varies from company to company; generally, it is fixed at 40% to 50% of the gross salary.
I hope this clarifies things for you.
I wish you all the best.
From India, Hyderabad
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Please advise basic percentage of salary. Eg- if Salary is Rs. 24000 per month. what will be the basic salary and VDA
From India, Delhi
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From India, Delhi
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Understanding Basic Wages in the Construction Industry
Basic wages should not be less than the minimum (basic + DA) prescribed by the appropriate government for your industry. The labor law only specifies this requirement, not the percentage of basic salary to gross salary/wages.
From India, Pune
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Basic wages should not be less than the minimum (basic + DA) prescribed by the appropriate government for your industry. The labor law only specifies this requirement, not the percentage of basic salary to gross salary/wages.
From India, Pune
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SALARY SHEET CALCULATION.xls
Salary calculation.doc