According to the new Wage Code rules, the basic salary of the employees should be 50% of the total salary or the Cost to Company (CTC), and not less than this . At present, most companies keep the basic salary of the employees low and the number of allowances remains high.
Read moreWhat should be my base salary?
Usually, the basic salary is 40% to 50% of CTC (Cost to Company). Statutory components such as bonus, PF, gratuity, and other benefits are determined on the basis of the basic salary. Any increase or decrease of basic salary can affect an employee’s CTC.8 Şub 2022
Read moreWhat is a basic salary in UK?
Current rates 23 and overUnder 18April 2021 (current rate)£8.91£4.62April 2022£9.50£4.81National Minimum Wage and National Living Wage rates – GOV.UK www.gov.uk › national-minimum-wage-rates
Read moreWhat should be the basic salary?
Basic salary is always taxable and should, therefore, not be more than 40% of the cost to company . However, it should also not be kept too low since it will then result in reduction in the other constituents of the salary.
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