We have lot of confusion around for Basic and CTC and Minimum wages.

For example as per Karnataka Minimum wages act, un-skilled employees salary should be approx. 12665. So if we take 40% of 12665 then 5066 will be basic.

So is it ok to keep the basic 5066 and add DA 2026 and total of all this gives Gross CTC of 12665.

Or is there a minimum limit mentioned somewhere about the basic for un-skilled employee whose decided basic is 12665.

And how can this affect the CTC of the employee if not calculated properly

If as per Karnataka Minimum wages act, un-skilled employees salary should be approx. 12665 which means you cannot pay anything less than 12,665/- as his /her salary if this is the salary you want to pay an unskilled workers.

Since MW will always talk about Basic+DA wages. So, you need to show his/her Basic+DA of Rs 12,665 as well.

For example if an unskilled employee total Salary is 17,731/- than Basic: 12,665/- and HRA : 5066/- (40% of Basic) need to show.