% of basic on gross

smitha (Querist) 20 September 2014 This query is : Resolved
This is a firm in kerala.

How much is the % of basic on gross.

As there are staff earning above rs 18000 ranging to 40000 , what can be % we fix for the basic and da?

Could it be taken as 40%?

regards
smitha

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Kumar Doab (Expert) 21 September 2014

It is rather a HR query!
The practice that you have pointed out is followed in many companies:
% may range from 25-40%.
The HRA is % of basic say 30% in Metro A1 cities
DA, VDA is as per guidelines that are issued by Dept of labor…………..Check with them and O/O labor Commissioner…………..
The EPFO officials shall not allow to lower the basic wages and thus reduce PF contribution hence refer the matter to an able Labor Law Consultant and let them advice the employer………………..
Majority of the employers are asking HR to handle legal matters too however HR personnel should be smart enough to refer to legal cell……………………….

Rajendra K Goyal (Expert) 21 September 2014
This all depends upon your company policy. If you adopt the criteria adopted by state or central government it would be having good reason / explanation for basis of fixation.