S.V. Deshpande (Manager - HR) 22 March 2011
Dear friends,
I am working as Manager HR in one of the middle level organistion. I am in the field since 1978. I have observed that there is no fixed pay/salary structure in Private Sectors which creats confusions to new comers.
Is there any fixed ration for Basic + Dearness allowance in relation to annual CTC or gross pay package? if so please inform me to update my knowledge.
With regards,
S.V. Deshpande
M M Jaya Rao (Employee) 23 March 2011
Dear Mr.Deshpande,
I too observed similar situation in private sector. Later I came to know and I believe that it is not the question of having scale of pay with fixed pay scale structure. But it is more importnat for the employer to pay as per Minimum Wages Act, Workmen Compensation Act and other related Acts. However, the for PF & ESI purposes, the basic pay and DA shall be half of the total monthly gross salary (known as CTC) on which several benefits will be calculated. The other components like HRA, TA, VARIABLE PAY, MEDICAL ALLOWANCE ETC., are just to split up the gross salary as such. Let's wait for some more valuable suggestions from this forum.
Thanks !
MMRAO
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