Hi Amarjeet,
my phone number is +971 50 725 8083 - alternately, I will be in Mumbai on Monday and will be available to speak on +91 9987 546 153. you can also email me on
regards
Kabir Luthra
From United States, Los Angeles
1my phone number is +971 50 725 8083 - alternately, I will be in Mumbai on Monday and will be available to speak on +91 9987 546 153. you can also email me on
regards
Kabir Luthra
From United States, Los Angeles
Dear Vipul,
Thanks for your inputs. Could you kindly suggest as to what prevent me keeping basic at Rs. 6600/- where total salary is Rs. 7000/-. Essence is that I am paying far above the Minimum Wages and the prescribed limit of 6500 for providing option to employee, it is not saving PF, rather utilising the minimum prescribed limit while allowing the employee to manage his finance on his own, otherwise there is no use of providing option to employees with basic above 6500/- to contribute for PF or not.
Now the question are-
1. If there is any regulation which mandate any minimum % of gross salary to be the basic salary ?
2. Is it necessary to split the salary in heads like Basic, DA, HRA, Conv, LTA...etc ?
3. If any law prevent paying consolidated salary which is above the minimum prescribed limits ?
Would appreciate comments with relevant regulations.
Regards
Satya
# 9818066620
From India, Gurgaon
Thanks for your inputs. Could you kindly suggest as to what prevent me keeping basic at Rs. 6600/- where total salary is Rs. 7000/-. Essence is that I am paying far above the Minimum Wages and the prescribed limit of 6500 for providing option to employee, it is not saving PF, rather utilising the minimum prescribed limit while allowing the employee to manage his finance on his own, otherwise there is no use of providing option to employees with basic above 6500/- to contribute for PF or not.
Now the question are-
1. If there is any regulation which mandate any minimum % of gross salary to be the basic salary ?
2. Is it necessary to split the salary in heads like Basic, DA, HRA, Conv, LTA...etc ?
3. If any law prevent paying consolidated salary which is above the minimum prescribed limits ?
Would appreciate comments with relevant regulations.
Regards
Satya
# 9818066620
From India, Gurgaon
Satya,
there are no explicit laws that govern this area. only people's deductions from what they read. the only point that has some clarity, that too only after the PF department has taken up cases against some large establishments, is that basic salary should not be less than the state minimum wages.
now this causes some additional confusion in the sense that in many states, minimum wages is already accounted for as Basic + (V)DA. can you then add another DA on top of this - is this also PF able?
in terms of allowances you can pay whatever you want - call it dancing allowance, or uniform washing allowance or haircut allowance - if you pay it each month, the PF/ESI inspectors will want you to deposit money against it. there are some allowances like CCA and Washing Allowance that dont attract PF as on date - but these keep changing
all in all there is very little clarity on these issues. the labour department says one thing, the factory inspector another, the PF people a third and ESI a fourth. for the moment, it is safe to assume the following to stay out of trouble:
1 keep your basic at least equivalent to minimum wages and pay PF on this amount
2 for people with salaries over 6,500 keep 50% as basic (ensure it is over minimum wages) and the balance as allowances
regards,
Kabir Luthra
From United States, Los Angeles
there are no explicit laws that govern this area. only people's deductions from what they read. the only point that has some clarity, that too only after the PF department has taken up cases against some large establishments, is that basic salary should not be less than the state minimum wages.
now this causes some additional confusion in the sense that in many states, minimum wages is already accounted for as Basic + (V)DA. can you then add another DA on top of this - is this also PF able?
in terms of allowances you can pay whatever you want - call it dancing allowance, or uniform washing allowance or haircut allowance - if you pay it each month, the PF/ESI inspectors will want you to deposit money against it. there are some allowances like CCA and Washing Allowance that dont attract PF as on date - but these keep changing
all in all there is very little clarity on these issues. the labour department says one thing, the factory inspector another, the PF people a third and ESI a fourth. for the moment, it is safe to assume the following to stay out of trouble:
1 keep your basic at least equivalent to minimum wages and pay PF on this amount
2 for people with salaries over 6,500 keep 50% as basic (ensure it is over minimum wages) and the balance as allowances
regards,
Kabir Luthra
From United States, Los Angeles
Hi Hardik,
Your below 2-liner has given me the CLEAREST understanding of a topic that seems to be a confusion between "Basic V/s Minimum Wages V/s EPF deduction". I'm only hoping your facts are from the right source, because I have understood your statement perfectly.
Thanks Again.... Lionel
From India, Mumbai
Your below 2-liner has given me the CLEAREST understanding of a topic that seems to be a confusion between "Basic V/s Minimum Wages V/s EPF deduction". I'm only hoping your facts are from the right source, because I have understood your statement perfectly.
Thanks Again.... Lionel
From India, Mumbai
Hi Lionel,
I wish the 2-Liner of Hardik been from a right source. I am not trying to make the topic confusing but the truth is that as per the guidelines of the EPF Deptt., that I am attaching herewith, the deduction of the P.F. cannot be less than the minimum wage. As far as the carry home is concerned it can be obviously more than the minimum wages, no doubt about that. Please go through the Departmental Orders.
From India, Mumbai
I wish the 2-Liner of Hardik been from a right source. I am not trying to make the topic confusing but the truth is that as per the guidelines of the EPF Deptt., that I am attaching herewith, the deduction of the P.F. cannot be less than the minimum wage. As far as the carry home is concerned it can be obviously more than the minimum wages, no doubt about that. Please go through the Departmental Orders.
From India, Mumbai
Hi Lionel, It was correct nevertheless there are two recent amendments appending here for your perusal. — Regards, Hardik
From India, Pune
From India, Pune
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From India, Lucknow
Good Morning Guys ! Me Preeti , I searched whole delhi and Bangalore for SAP course and all suggested SAP HR but SAPGURU suggested SAP CRM and said SAP HR has got saturated I checked in naukri and monster very few jobs were there for SAP HR and for SAP CRM there were many then I joined SAPGURU I paid 1 lakh and after 2 months of training and practice they placed me in TCS with 18L PA package am so excited thanks a lot to Dr.Rohit sharma ji ,he is a great human being very humble n generous n kind person he helped me a lot
From India, Lucknow
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PF- on minimum wages-EPF appellate tribunal-Award against Deptt..pdf