Dear Seniors,
Please clarify, when I met with the PF commissioner regarding the PF contribution query, he instructed that it should be Basic+DA or 60% of the Fixed Salary, whichever is higher.
As per the PF commissioner's instructions, Basic+DA should be 60% of the Fixed Gross Salary, which is correct.
If there is any act stating that PF contributions should be 60% of the fixed salary, please provide the relevant information or attach the document.
Regards, S. Vadivelu
From India, Madras
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2Please clarify, when I met with the PF commissioner regarding the PF contribution query, he instructed that it should be Basic+DA or 60% of the Fixed Salary, whichever is higher.
As per the PF commissioner's instructions, Basic+DA should be 60% of the Fixed Gross Salary, which is correct.
If there is any act stating that PF contributions should be 60% of the fixed salary, please provide the relevant information or attach the document.
Regards, S. Vadivelu
From India, Madras
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Please find enclosed the EPF tribunal's judgment in this regard, which is self-explanatory. The fourth page is most important in this judgment.
Regards,
Shish Ram Uniyal
Compliance Consultant
[Phone Number Removed For Privacy Reasons]
From India, New Delhi
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Regards,
Shish Ram Uniyal
Compliance Consultant
[Phone Number Removed For Privacy Reasons]
From India, New Delhi
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Hi,
Basic salary should satisfy the Minimum Wages Act. If you are paying a consolidated salary (i.e., without any other allowances), then the EPF payable should be 70% of the total salary or wage paid to the employee, and this total consolidated salary should satisfy the Minimum Wages Act.
If Basic + DA is satisfying the Minimum Wages Act and you are paying other allowances like HRA, Conveyance, etc., you can pay EPF at 12% on Basic + DA.
Jagadish V
9666026279
santoshvegi@gmail.com
From India, Visakhapatnam
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Basic salary should satisfy the Minimum Wages Act. If you are paying a consolidated salary (i.e., without any other allowances), then the EPF payable should be 70% of the total salary or wage paid to the employee, and this total consolidated salary should satisfy the Minimum Wages Act.
If Basic + DA is satisfying the Minimum Wages Act and you are paying other allowances like HRA, Conveyance, etc., you can pay EPF at 12% on Basic + DA.
Jagadish V
9666026279
santoshvegi@gmail.com
From India, Visakhapatnam
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf