Basic Pay 50% Rule in New Salary Structure
The Basic Pay 50% Rule plays a central role in modern salary structure design by aligning compensation with legal and financial standards. It ensures that basic wages form the foundation of total earnings, enabling accurate benefit calculations. HR professionals use this rule to create balanced and compliant payroll systems that adapt to evolving regulations. Employees gain better financial security and clarity about their compensation. This rule also simplifies payroll audits and statutory reporting processes.