Hi Everyone, I have two questions and would appreciate your guidance:
1) Are there any specific rules in labor law for calculating basic pay?
2) Can a company independently decide the percentage of basic pay, such as 40% of the total salary or a fixed amount like 25,000, whichever is lower?
I’d be grateful for your input on this.
From India, Pune
1) Are there any specific rules in labor law for calculating basic pay?
2) Can a company independently decide the percentage of basic pay, such as 40% of the total salary or a fixed amount like 25,000, whichever is lower?
I’d be grateful for your input on this.
From India, Pune
As per current legislation following are the response
1) No such legislation to calculate the Basic Pay but it is advisable to consider the Basic wages not lesser than the scheduled Minimum wages
2) you can consider 40% but plan to have Basic as said above
If Code on wages is implemented then entire scenario will change
From India, Bangalore
6401) No such legislation to calculate the Basic Pay but it is advisable to consider the Basic wages not lesser than the scheduled Minimum wages
2) you can consider 40% but plan to have Basic as said above
If Code on wages is implemented then entire scenario will change
From India, Bangalore
Hi Jeevarathnam,
Thank you for your response.
The minimum wage in Maharashtra is ₹14,700/-, and for skilled employees in our company, I’m considering setting the basic pay at ₹25,000/-.
I believe this will meet the requirement, and there should be no compliance obligations, correct?
From India, Pune
Thank you for your response.
The minimum wage in Maharashtra is ₹14,700/-, and for skilled employees in our company, I’m considering setting the basic pay at ₹25,000/-.
I believe this will meet the requirement, and there should be no compliance obligations, correct?
From India, Pune
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HRA Calculation.xls