Reduction of Basic

Hello people!

I am in dire need to complete my task (project) on Reduction in cost on recruitment and to evaluate the training programme.

Please folks, guide me which is the best inexpensive way to establish a reduction in cost to the enterprise and the methods to measure the training programme whereby both the company and the employess benefit.

Thanks in advance and hoping to here from you asap.

Kate.

Hi!

Can u tell me how to reduce expense on recruitment methods and how to evaluate training programme, these are my project topic, please do provide inputs...ne info is welcum @

Thanks!

Hi

You can bring down the basic pay as a percentage CTC from 50% to 40%. However, make sure that the actual amount of basic does not get reduced, since it affects the PF etc.

Surendra

Mr. Vijaygk

Say per your post, you said that DA will be part of BAsic for PF calculation, but just now i gone through the PF Act, which say that DA doesnt inclueds in PF calculation, and extract of the same is below,

{ “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
(iii) any presents made by the employer;}

can any body gives any inputs regarding this, becase i am calculating PF on the basis of Basic (not included the DA)??

regards

__________________
K Mahesh Kumar

Dear member

complete solution of government returns as per the factories act, 1948

sanjay Zala

dear sir

As per proviosn of PF Act you can not reduces Basic Salary Refere Section 12


Dave D m

What are the scope if company is restructuring the salary structure?

Hello Vijay,

Ideally this is not practical (Salary can never decrease in a organization) but the if the change is taking place for the entire organisation than there no legal restriction to it. Even if you do it for an individual there is no legal obligation or law for it but the the employee will face problems in his future jobs

thanks mr Nilendra ,ash.pgdm for answer.& Sdix for questio

Hi Ashi, I am MMRAO,

I would like to clarify your PF will always be calculated on basic pay only. In your case, the basic pay is Rs.5000/-. The statutory rate of PF is 12%. Hence, 600/- will be the contribution from employee side. another 600/- should be contributed from employer side. There is one more thing to know. Here,the employer contribution i.e. 600/- will be divided into two parts. One is towards PF @ 3.67% another one is towards 8.33% towards Pension Scheme. So total Rs.1200/- will be credited to the employee PF A/c. at EPF Office by way of R1 monthly challan.

Hope you got clarification.

Pl.Revert back if any.

Regards,

MMRAO