Dear All
PF contribution is 12% on Basic+DA.
We pay lot of allowances also e.g. HRA,Medical,Attendance ,Telephone ,conveyance etc & while doing so ,take compliance of Minimum Wages in account.
Is there any provision or law that binds an employer that the allowances can not be more than a %age of total salary?? else employer may pay maximum allowances & small Basic +DA to escape liabilities under PF,BONUS,GRATUITY Acts etc.
Regards
Suresh
From India, Nagpur
10PF contribution is 12% on Basic+DA.
We pay lot of allowances also e.g. HRA,Medical,Attendance ,Telephone ,conveyance etc & while doing so ,take compliance of Minimum Wages in account.
Is there any provision or law that binds an employer that the allowances can not be more than a %age of total salary?? else employer may pay maximum allowances & small Basic +DA to escape liabilities under PF,BONUS,GRATUITY Acts etc.
Regards
Suresh
From India, Nagpur
Yes Suresh, Their is a law that 40 %of total ctc should be basic+merged da Thnaks and regards Jayendra Chaturvedi
From India, Gurgaon
From India, Gurgaon
Dear Jayendra,
It would helpful if you can provide such ceilings with specific reference to Act/Rules.
Aside to Suresh: Lower basic may attract your attention of PF inspector. It is not advised to go too low.
Rgds
Vishwanath
From India, Bangalore
It would helpful if you can provide such ceilings with specific reference to Act/Rules.
Aside to Suresh: Lower basic may attract your attention of PF inspector. It is not advised to go too low.
Rgds
Vishwanath
From India, Bangalore
Dear Suresh,
There is no any law as such, however I understand that some inspecting staff insisting that Basic +DA should be at 50% of the Gross salary.
To my knowledge PF authorities only should clarify this.
Regards,
Srinivas
From Germany
There is no any law as such, however I understand that some inspecting staff insisting that Basic +DA should be at 50% of the Gross salary.
To my knowledge PF authorities only should clarify this.
Regards,
Srinivas
From Germany
Dear Srinivas
You re right. We have experienced difficulty in this respect.
The inspection team has directed us to pay PF on other allowances since Basic is less than 50%.
We are forced to change the structure.
rgds
Vishwanath
From India, Bangalore
You re right. We have experienced difficulty in this respect.
The inspection team has directed us to pay PF on other allowances since Basic is less than 50%.
We are forced to change the structure.
rgds
Vishwanath
From India, Bangalore
Dear Vishwa/Suresh,
You cannot cross the lower ceiling limit (40 % Basic ) ,in any salary structure it is a guideline,which is a parameter base for pf proceedings.
Thnaks an dregards
Jayendra Chaturvedi
From India, Gurgaon
You cannot cross the lower ceiling limit (40 % Basic ) ,in any salary structure it is a guideline,which is a parameter base for pf proceedings.
Thnaks an dregards
Jayendra Chaturvedi
From India, Gurgaon
Hi all,
As per the inspection done in our organization,
the inspector told me that if Basic+ DA is less then 6500/- then it will attract special allowance, food allowance etc as wages.
HRA and Conveyance are excluded.
Regards,
Anita
From India, Bangalore
As per the inspection done in our organization,
the inspector told me that if Basic+ DA is less then 6500/- then it will attract special allowance, food allowance etc as wages.
HRA and Conveyance are excluded.
Regards,
Anita
From India, Bangalore
Dear All
This query needs a specific answer.We all experience the same type of difficulty & PF dept just directs its way
Neither the employee nor the employer is benefited as per the Social Security guide lines & money keeps lying with the dept.
Request Seniors to Guide
Regards
Suresh
From India, Nagpur
This query needs a specific answer.We all experience the same type of difficulty & PF dept just directs its way
Neither the employee nor the employer is benefited as per the Social Security guide lines & money keeps lying with the dept.
Request Seniors to Guide
Regards
Suresh
From India, Nagpur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf