Percentage of basic & DA on total gross salary

S.Kumarasubramanian · #11 09-09-2008, 12:39 PM

Thank you Mr.Srinivasan for clearing my doubt. Since yesterday I am in search of the article in support of my opinion on admin charges. If it is found I will revert back to you for further clarification with regards to the admin charges.

Regards.

S.Kumar

Quote:

Originally Posted by absrinivasan

Dear Mr Kumar,

As per the PF Act, Wages means Basic and DA and not Gross Salary and hence there is no need to contribute Admin. / EDLI charges on Gross Salary.

The Enforcement Officer has no right to say the Basic and DA should be 70% of Gross Salary and there is no law provides for it. The normal industry standard of BP & DA is 40% on Total Gross Salary. As one of our friends rightly said, you should not have Rs.500 as Basic and Rs.6000 as HRA with total Gross Pay of rs.6500/-.

Since you are new to the PF, I suggest you to make restrict PF contributions with a max. salary of Rs.6500/- as stipulated in the Act.

A B Srinivasan

AHN · #12 11-09-2008, 06:02 PM

Hi All,

Thank you all for contributing your views and suggestions on this query.

Regards,
AHN

kumar mukesh · #13 06-08-2009, 05:17 PM

sir,

can you tell me what any salary breakup according to govt. rule.

Basic = %
DA = %

Sir, please tell me

kmanojkumar51 · #14 07-08-2009, 02:39 PM

hi Mr. Srinivasn,

i have one doubt.

Eg: one of our employee is having BA+DA of rs. 10,000/- and we are contributing to PF on 10000(Rs.1200 being 12% of Rs.10,000/-). and for pension fund we are contributing 8.33% of Rs.6500(i.e. Rs.541) and balance amount goes to Employees PF.

here i have the doubt that, for calculating EDLI, and EdLI administration charges, should we consider Rs.6500 or Rs.10,000.

waiting for early reply

Quote:

Originally Posted by absrinivasan

Dear Mr Kumar,

As per the PF Act, Wages means Basic and DA and not Gross Salary and hence there is no need to contribute Admin. / EDLI charges on Gross Salary.

The Enforcement Officer has no right to say the Basic and DA should be 70% of Gross Salary and there is no law provides for it. The normal industry standard of BP & DA is 40% on Total Gross Salary. As one of our friends rightly said, you should not have Rs.500 as Basic and Rs.6000 as HRA with total Gross Pay of rs.6500/-.

Since you are new to the PF, I suggest you to make restrict PF contributions with a max. salary of Rs.6500/- as stipulated in the Act.

A B Srinivasan

kmanojkumar51 · #15 07-08-2009, 02:41 PM

hi Mr. Srinivasn,

i have one doubt.

Eg: one of our employee is having BA+DA of rs. 10,000/- and we are contributing to PF on 10000(Rs.1200 being 12% of Rs.10,000/-). and for pension fund we are contributing 8.33% of Rs.6500(i.e. Rs.541) and balance amount goes to Employees PF.

here i have the doubt that, for calculating EDLI, and EdLI administration charges, should we consider Rs.6500 or Rs.10,000.

waiting for early reply

manoj

balaji.venkatesan · #16 07-08-2009, 02:54 PM

Dear Mr. Prasad,

Recently we had a PF inspection at our office. We maintained all the relavant document in clear manner but we are following 50% basic and DA on gross. Pf officer said strictly we have to follow minimum 65-70% then we finally said ok we will follow this eventhough we paid 70000 Rupees for non maintaining 70% on gross, they asked 140000 but we paid 700000 with the help pf enforcement officer. for example if you ask there is any rule for 70% simply they say there is no rule but they will catch you some other way. Now we restructured all the basic things like 60% basic. So try to formulate 60% of basic on gross. There is no way to escape from PF official this is my real time experience.

Madhu.T.K · #17 07-08-2009, 10:45 PM

Even if EPF is contributed on Rs 10000, EDLI (like EPS) is contributed on a salary of Rs 6500 only. Similarly administrative charges on EDLI is alos calculated on Rs 6500.

Regards,

Madhu.T.K