PF query

pb · #1 23-05-2009, 12:32 PM

Hello,

We are a company paying PF at 12 % on the 40 % of the Gross salary i.e basic + DA is 40 % of gross. If the salary is rs 20,000/- 40 % of the Gross is basic +DA Rs 8000/- The PF insepctor who had visited the factory insists that it has to 60 % of the Gross towards Basic+DA. Is his view correct as from the reading of the Act, there is no clause under the PF Act which says that one shouold apply minimum 60 % of the Gross salary for contribution towards PF. Pl reply to this query urgently,

Regards,

P Bhaskaran

jai bakshi · #2 23-05-2009, 12:36 PM

dear Bhaskran,

PF Inspector can not insists because pf deduction upper limit is rs 6500/= and you may make celling upto upper limit of pf deduction. as per my view he cann't force to u.

malikjs · #3 23-05-2009, 01:16 PM

dear
for bifurcation of salary you take care of two things.
1.make sure that you are deducting PF on minimum wages of state.
2. for heigher salary as u have mentioned there is no sule that basic+DA should be 60 % and ask inspector to give in writing,it is your choice and you can make it 40% ,it should seems to be reasonable.
tks
j s malik