For calculating retirals such as provident fund, gratuity and pension, basic salary is important. For employees earning dearness allowance, which is also considered for retirals, the basic salary is pretty low since dearness allowance is a substantial amount. Employers would like to keep this part of the remuneration lower since they have to contribute to the retiral funds, and this becomes part of employment cost escalation.
For employees - mainly managerial and supervisory staff - who donot get dearness allowance, the thumb rule for large, well established companies, basic salary forms 30 % of CTC since increasingly variable pay has taken a significant part of annual remuneration.
A K Basu
From India, Delhi
For employees - mainly managerial and supervisory staff - who donot get dearness allowance, the thumb rule for large, well established companies, basic salary forms 30 % of CTC since increasingly variable pay has taken a significant part of annual remuneration.
A K Basu
From India, Delhi
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From India, Ambala
3From India, Ambala
Basic salary includes what???????? i mean what are the various things covered under the Basic salary?
From India, Delhi
From India, Delhi
Hi Please go to this thread if it may be useful
https://www.citehr.com/281623-comple...ess-excel.html
From India, Hyderabad
https://www.citehr.com/281623-comple...ess-excel.html
From India, Hyderabad
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Salary-Note.doc
SALARY SHEET CALCULATION.xls