If you reduce basic to say 30-40% of gross the labour officer will raise objection?

mandy007
We want to revise our salary structure because people who come for interview want more salary in hand. We deduct PF, ESIC (if applicable) and PT from gross salary to arrive at net salary.
Following is our current salary structure which is being followed since 2016 and it was recommended by our labour consultant:
Gross: 15,000.
Basic Salary: 9000 (60% of Gross).
HRA: 2250 (15% of Gross).
Medical Allowance 1500 (10% of Gross).
Education Allowance 1500 (10% of Gross).
Washing Allowance 750 (5% of Gross).
Deduction
ESIC (1.75% of Gross- Washing Allowance) i.e. 250.
PF (12% of Basic Salary) i.e 1080.
PT 200
Net Salary: 13470
The consultant says if you reduce basic to say 30-40% of gross the labour officer will raise objection and we will have to pay arrears for pf purpose hence it is better to keep it at 60%.
Please study this existing salary structure and provide guidance on how to improve it.
Glidor
instead you have to understand what component can be excluded.
in cash terms , only HRA can be excluded from the gross salary, i.e 66 % to 70% salary is covered under EPF
consultant has added some conv allowance also, and made it 60%
apart from this, food allowance is exempted but it can not be paid in cash, but in form of foods purchased by employer and tendered to employee , if paid in cash, it is subject to EPF and ESI, similar is uniform allowance,
in a nutshell only HRA and conv can be excluded, and if any other allowance is offered for the employees who earn basic salary less then 15000/- then the establishment will have to face troubles,
basic above 15000/- the department does not pay much head, as their criteria of 15000/ is reconciled and they are getting contribution of 15000 or more
mandy007
Please provide a better salary structure so that employee receives more salary in hand. I understand pf and esic are statutory deductions and they help employees in long run but employees are more concerned about in hand salary to manage monthly expenses.
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