Could anybody please help me to calculate my Basic salary? Should it be 40% of gross? or is there any other regulation that came into effect?
From India, Pune
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From India, Pune
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Basic Salary Calculation in India
In India, the calculation of basic salary can vary depending on company policy and applicable labor laws. However, it is common practice for the basic salary to be set at around 40% to 50% of the gross salary, though this can differ based on the organization's compensation structure and industry standards.
There are no strict regulations mandating that basic salary must be exactly 40% of the gross salary; rather, it should comply with the relevant minimum wage laws applicable in your state or industry.
If your organization has specific guidelines or if you are subject to collective bargaining agreements, those should be taken into account. It's advisable to check with your HR department or consult the company's salary structure to ensure compliance with local regulations and company policies.
From India, Shimla
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1In India, the calculation of basic salary can vary depending on company policy and applicable labor laws. However, it is common practice for the basic salary to be set at around 40% to 50% of the gross salary, though this can differ based on the organization's compensation structure and industry standards.
There are no strict regulations mandating that basic salary must be exactly 40% of the gross salary; rather, it should comply with the relevant minimum wage laws applicable in your state or industry.
If your organization has specific guidelines or if you are subject to collective bargaining agreements, those should be taken into account. It's advisable to check with your HR department or consult the company's salary structure to ensure compliance with local regulations and company policies.
From India, Shimla
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As of today, there is no hard and fast rule to fix the Basic Salary as a percentage of gross or CTC. It depends on the organization's policy.
New Labor Codes
As per the new labor codes (yet to be implemented), it should be 50% of the total wages as directed in the definition of Wages under the Codes.
Regards, S K Bandyopadhyay
CEO-USD HR Solutions
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
From India, New Delhi
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New Labor Codes
As per the new labor codes (yet to be implemented), it should be 50% of the total wages as directed in the definition of Wages under the Codes.
Regards, S K Bandyopadhyay
CEO-USD HR Solutions
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
From India, New Delhi
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SALARY SHEET CALCULATION.xls
Salary calculation.doc