if Basic+DA is 20,000.PM then PF will be claculated on 6500 basis or 20,000 basis
if company is ready to pay on actual basic+da then what should be the break up
The EPF Contribution in Pension Account goes upto maximum 8.33% of the current wages ceiling, i.e. Rs. 6500/-. Which clearly means that the highest contribution in pension account is Rs. 541/- as per current wages ceiling.
The balance amount of the contribution (1200-541=659) Rs. 659/- will go to A/c 1.
Hope the doubt may be clear.
Best solution to your problem is by increasing your contribution 12% to 20% (voluntary) with the permission of the employer. Employer's burden will be administrative charges of the contribution which shall be very meager. During my tenure of employment, (around 23 years) Company was contributing @ 10% (8.33% + 1.67%) & whereas my contribution was 20%(8.33% + 11.67%) which has benefits me at the time of my retirement.
You can talk to your employer by considering your case, which will be beneficial to you in the long run.
Generally Special Allowance is meant to compensate the cost of dearness. In your case the SA you referred to is to take care of dearness, then certainly it will attract PF. Not only that, conveyance allowance is also attractable in view of the circular PF has issued last year. However, the all total of salary is crossing Rs. 6,500 (excluding HRA), then PF is payable (at present) upto Rs. 6,500 only and anything above it is left open.
I have the following doubts and would request for clarifications :
1. Whether payment of DA + VDA is compulsory alongwith Basic Salary ? Suppose, if we do not pay DA and or VDA then how to bifurcate the Salary Structure ? Once we pay the Fixed DA is it necessary to pay VDA also.
2. Whether ceiling payment of Rs.6,500/- could be taken as base for PF eligibility (Basic + FDA) ) and rest on other allowances ?
3. what allowances could be paid which would not attract PF ?
Could you please send a copy of the circular notified by PF authorities, wherein the Conveyance Allowance is attractable.
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