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.

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2 Replies

veerendar singh (tax consultant) 12 May 2021

Depends upon your local labour laws

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.