PF Implications.

Sanjib D Lahkar · #1 (**permalink**) 17-09-2007, 03:30 PM

Dear Friends,

I would be grateful to be advised if the following would attract PF if introduced:

1)Special Allowance[/b]- a fixed amount paid per month to employees based on his job profile.For example since there is a higer attrition for Technical Staff-pay that category of employees a higher "Spl.allowance" vis-a-vis other staff in ths same scale.

2)Personal Pay-An amount of 25% of Basic pay paid monthly to select category of employees.

Thanks -expecting a host of response.

Regards,

Sanjib.

[/b]

Amitmhrm · #2 (**permalink**) 17-09-2007, 05:59 PM

Hi Sanjib,

No dear, it will not make any changes in PF contribution..
As PF contribution depends on Basic and DA only..
So addition of other components in salary package will not affect the same.
But yes the addition should not affect teh amount of Basic as well as DA defined earlier...

Regards,

Amit Seth.

Sanjib D Lahkar · #3 (**permalink**) 18-09-2007, 05:46 PM

Dear Amit,

Thanks for your response.

Yes,of course PF is attracted only on Basic and DA.

I only wanted to be cautious' in case there is any extended arguement by the PF inspectors that the Spl. Allowance or the Personal Pay is a disguised way to avoid PF and therefore should attract PF.

I recollect from this forum that a few years ago in Coimbatore(I think) the PF Inspector suggested that ,except HRA, everyother allowance would attract PF.

Any further views please?

Thanks again.
Regards,

Sanjib.

Amitmhrm · #4 (**permalink**) 18-09-2007, 06:13 PM

Hi Sanjib,

Welcome..

No as far as i know, still only Basic and DA attract the PF contribution amount.

Regards,

Amit Seth.

rajdeepbarot · #5 (**permalink**) 18-09-2007, 06:33 PM

Hi,
this is Rajdeep.Just want to know that if an employee is to be paid a salary of Rs. 8000 what should be the breakup of it .

Can i get a salary structure for this.
I am also very much keen to understand the entire end-to-end process of ESIC and PF,like what are the forms to be filled ?what are the other requirements.

It would really be a great help if someone can share their views on it.

Regards
Rajdeep

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