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What Is the Basic Pay 50% Rule in Salary Structure

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The Basic Pay 50% Rule requires employers to design salary structures where basic pay forms a minimum of 50 percent of the total cost to company. This approach improves statutory benefit calculations such as provident fund and gratuity, which are based on basic salary. It reduces the misuse of allowances to avoid contributions and ensures employees receive fair long-term benefits. The... https://savvyhrms.com/basic-pay-50-rule-explained/

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