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Rishabh Kapoor   12 May 2021

Basic pay more than 50 of CTC

usually it is observed that basic pay is 50% of total CTC.
however if we want to restructure the CTC , can the basic pay be more than 50% of CTC. if not, please provide the supporting reason and document.


 2 Replies

veerendar singh

veerendar singh (tax consultant)     12 May 2021

Depends upon your local labour laws
CMA Poornima Madhava

CMA Poornima Madhava (CMA)     12 May 2021

Having a salary structure wherein the basic pay is more than 50% of CTC is more beneficial to employees. So I think this should be acceptable. From the employer perspective, having a higher proportion of basic pay means a higher outflow.

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