Basic Salary

  1. I’ve noticed that my current company sets the basic salary at 40% of the Cost to Company (CTC), while I’ve come across information suggesting that it should ideally be at least 50%. Should I approach my employer about adjusting this, or is it typically determined by internal policies? I understand that if they’re aware of this guideline, they might aim to adhere to it, but I’m unsure of the protocol.

  2. I’ve encountered an issue regarding my night shift allowance. When I joined, it was agreed that this allowance wouldn’t be included in my CTC to avoid potential complications with future employers in negotiation of salary, the same will be phrased as used other allowance in fixed salary. However, after 1.5 years, the company updated my CTC structure without prior discussion and began including the night shift allowance in my increment letter and pay slip. This effectively reduced my fixed CTC. I’ve attempted to address this with them, highlighting the initial agreement in my offer letter, but haven’t had success. Could you provide guidance on how to navigate this situation?

A prompt and accurate answer will be really appreciated.

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Currently it is determined by internal policies….the Labour codes suggest 50% of Gross Salary.

If it is 40% of CTC, then it must be atleast or if not more that 50% of Gross.


Sundar Rajan J

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