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.
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Quick Summary
This discussion explores whether an employee's basic pay can constitute more than 50% of their total Cost to Company (CTC). While a higher basic pay is generally more advantageous for employees, it can lead to increased outflows for employers. The feasibility often depends on local labour laws and company policy.
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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