Maximum limit of basic pay

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3 Points Posted on 11 May 2021
please confirm maximum limit of basic pay composition as a % of CTC ?
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On 11 May 2021 at 23:10 Report
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This discussion clarifies the maximum limit for basic pay as a percentage of Cost to Company (CTC). It is confirmed that basic pay should generally not exceed 50% of the total CTC, as stipulated by the Code of Wages, 2019. The conversation also touches upon gross pay calculations related to net profits under Section 198 of the Companies Act.

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Chartered Accountant
24588 Points Posted on 12 May 2021
It is 40% to 50% of CTC
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On 12 May 2021 at 05:59
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3 Points Posted on 12 May 2021
Can you please state which act/law highlights the upper limit. it will be really helpful if you can share the reference.
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On 12 May 2021 at 08:39
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Chartered Accountant
24588 Points Posted on 12 May 2021
According to the Code of Wages, 2019, the basic pay of an employee has to be 50 per cent of the total CTC.
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On 12 May 2021 at 10:17
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My grammar is 💯 good I
7306 Points Posted on 15 May 2021

Highest basic pay is the above and highest gross pay is 5%, 11% & sometimes 200% of net profits under section 198 of companies act.

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On 15 May 2021 at 20:52

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