what is the percentage of basic in salary break up and is it differ from state to state
From India, delhi
2From India, delhi
There is no fixed percentage to basic upon gross. But, you need to consider the following factors to establish that you have settled down on a right percentage:
1. Your basic wages (in the absence of DA) should be more than the minimum wages payable to the employee as per the minimum wages act. (This is laid out by the respective state government and it is industry-specific).
2. Whatever allowances that you give other than the basic should go with a purpose (eg. HRA for house rent allowance , conveyance for commuting, medical for health, etc.)
3. Please remember that you cannot have an exhorbitant amount as "special allowance" because you will be questioned by the Provident Fund commissioner that you are trying to evade PF contributions.
If you go through the above norms, you will be some where in the range of 40% of gross as basic salary which can be managed.
Regards,
For Red Star Group
9910503928
From India, New Delhi
1. Your basic wages (in the absence of DA) should be more than the minimum wages payable to the employee as per the minimum wages act. (This is laid out by the respective state government and it is industry-specific).
2. Whatever allowances that you give other than the basic should go with a purpose (eg. HRA for house rent allowance , conveyance for commuting, medical for health, etc.)
3. Please remember that you cannot have an exhorbitant amount as "special allowance" because you will be questioned by the Provident Fund commissioner that you are trying to evade PF contributions.
If you go through the above norms, you will be some where in the range of 40% of gross as basic salary which can be managed.
Regards,
For Red Star Group
9910503928
From India, New Delhi
Dear Suman Ji
Basic is basic. All other allowances are granted on certain percentage of the Basic pay. Hithertoforth, PF was to be deducted @ 12% of basic plus dearness allowance and dearness pay if any. Hereafter all other allowances are also to be counted for PF contribution, I read in the press. This needs to be confirmed from PF website. Thanks & regards,
Shyam Agrawal
From India, Pune
Basic is basic. All other allowances are granted on certain percentage of the Basic pay. Hithertoforth, PF was to be deducted @ 12% of basic plus dearness allowance and dearness pay if any. Hereafter all other allowances are also to be counted for PF contribution, I read in the press. This needs to be confirmed from PF website. Thanks & regards,
Shyam Agrawal
From India, Pune
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