Maximum limit of basic pay

11 May 2021

please confirm maximum limit of basic pay composition as a % of CTC ?

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 12 May 2021

It is 40% to 50% of CTC

Rishabh Kapoor (3 Points)
Replied 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.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 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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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 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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