Hi All,
Can anyone share the CTC Breakup along with the Percentage of the components i.e Basic should be 40% or 50%?
Is it any compliance for keeping Basic 50% of CTC.
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There is no rule as of now. However, the proposed wage bill mandates the salary (read as Basic + DA) to be 50% of the CTC. All others will be categorized as allowances which can be the other 50% (this includes variable) . It is better to provision now if you are starting fresh.
Based on the city : Metros - HRA can be 50% of Basic and Non Metros - 40% of basic (looking at the IT exemptions). other statutory allowances can be included PF,ESI, Bonus as per the act.
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Basic should be atleast 50% of the total salary. New PF rules need that.
Thank you
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Can anyone share the detail payroll structure of new wage?
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Dear Mr Manoj
You may consider 55% as Basic+DA, 40% of Basic+DA as HRA, some amount towards conveyance and medical allowance, remainder towards special allowance.
This is a good practice.
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