| Dear Malik sir, Thanks for the clarity, however for Min. wage they take around Rs. 4000/- odd as basic + DA Also sir, if a company pays only basic instead of basic + da as its difficult to keep track of DA which keeps changing with CPI index ALso sir i was asked a question during an interview but i couldnt answer it goes as If one has to design a salary strcuture of 10000 ctc can one keep Rs. 500 as basic as a result of which the PF will be low, so will lower down other factors which are linked to basic like HRA etc. My query is in Rs. 10000 if basic is only 500 which is 0.5% of the CTC the other factors like Special allowance, conveyance, medical, city comp. allowance etc will be comparatively much higher than basic regards PS dear you can have only basic there is no need to show DA and most of the company donot show it also. secondly if total salary is 10000 and keeping basic only 500 ,it is foolishness.however there is no fixed rule for that but it shoul seems to be reasonable.minimum wages is 4000 for worker and whose basic and DA will be 4000 and a person getting 10000 will pay PF ON 500 ,SO IT IS FOOLISHNESS ONLY.IN MY VIEW ATLEAST BASIC SHOULD BE MORE THAN MINIMUM WAGES OR 40 % OF CTC ,WHICHEVER IS HIGH. DEAR MAKING IT 40% IS NOT THE LAW ,IT IS MY PERSONAL OPINION. TKS JS MALIK Hi It would be prudent to have 40 % - 50% of Gross Salary as Basic instead of CTC which included Employer PF, Bonus, Gratuity etc. In case the Basic exceeds Rs.6500/- check with your employer whether PF is to be recovered for Rs.6500/- or on actual basic after allocation of amount to 40-50 % of Gross. R.Srinivasan Learn Complete Practical Payroll Process e.g.-Attendance, Leave, Salary Master-(Basic, HRA, Conv. & Others Allowance), Salary Processing-(Paid Days, Deduct Days & Payable etc), Other -(OT, Incentive, Arrear, Bonus, Gratuity & Leave encashment etc), Deductions Rule-(Salary TDS, ESI, PF, Advance etc) etc under Labour Law, HR Policy-(Recruitment Process, Joining Formalities, FFS etc) & Advance Excel-(MIS, Macros & VBE etc) with 100% Job Placement. Call: 9953206011 Mr. S.D.Tiwari MBA-HR As a standard norm, 40% of gross salary is fixed as Basic salary and remaining 60% goes to various components like HRA, conveyance, utility allowance, entertainment allowance etc.. However, all these depend upon company to company and salary structuring vary from company to company. Thanks & regards R K Nair
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