Hara Priya
Your statement that P.F contribution is to be paid only on basic pay but not on DA is legally not correct. I invite your attention to Sec.6 of the P.F Act 1952 which states that the contribution shall be payable on Basic wages + Dearness allowance + retaining allowance + cash value of food concession if any.An employer cannot decide as to what componenents of salary shall be included for P.F contribution when the Act unambiguously passes a direction in this regard. Howver the effort you made by way of an example to show as to how to compute the contribution is admirable.
B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
1898Your statement that P.F contribution is to be paid only on basic pay but not on DA is legally not correct. I invite your attention to Sec.6 of the P.F Act 1952 which states that the contribution shall be payable on Basic wages + Dearness allowance + retaining allowance + cash value of food concession if any.An employer cannot decide as to what componenents of salary shall be included for P.F contribution when the Act unambiguously passes a direction in this regard. Howver the effort you made by way of an example to show as to how to compute the contribution is admirable.
B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
Dear Ms. Haripriya,
Kindly go thru the P.F.Manual. P.F.Deduction can be made Basic + DA and not other allowances subject to a limit of Rs.6500/- from the employer side. Further it is obligatory on the part of the employer to deduct on higher wages.
Regards.
Ravi.V
From India, Mumbai
Kindly go thru the P.F.Manual. P.F.Deduction can be made Basic + DA and not other allowances subject to a limit of Rs.6500/- from the employer side. Further it is obligatory on the part of the employer to deduct on higher wages.
Regards.
Ravi.V
From India, Mumbai
Dear Asha ji,
Here is your clarification on PF see attachment. Further :
A/C NO.1 :- From Employee 12% + Employer 3.67%
A/C No.2 :- 1.1 % (it's called PF admin charges)
A/C No.10 :- 8.33 % (pension)
A/C No. 21 :- 0.5% (E.D. L.I)
A/C No.22 :- 0.01 % (EDLI admin charges)
Note:- The PF Ceiling amount is Rs.6500 /- if the Basic salary is >= 6500 /- the pension salary will be paid Rs.541 and remaining goes to PF i.e A/C NO.1.
Regards,
PBS KUMAR
From India, Kakinada
Here is your clarification on PF see attachment. Further :
A/C NO.1 :- From Employee 12% + Employer 3.67%
A/C No.2 :- 1.1 % (it's called PF admin charges)
A/C No.10 :- 8.33 % (pension)
A/C No. 21 :- 0.5% (E.D. L.I)
A/C No.22 :- 0.01 % (EDLI admin charges)
Note:- The PF Ceiling amount is Rs.6500 /- if the Basic salary is >= 6500 /- the pension salary will be paid Rs.541 and remaining goes to PF i.e A/C NO.1.
Regards,
PBS KUMAR
From India, Kakinada
Dear Jay,
Thankx for your valuable reply now i just want to know the both 12% is should be equal or its just depend on employer either can contribute on 6500/- only or he can also contribute on the gross salary.
From India, Delhi
Thankx for your valuable reply now i just want to know the both 12% is should be equal or its just depend on employer either can contribute on 6500/- only or he can also contribute on the gross salary.
From India, Delhi
Dear Members,
Could you please suggest excel format that can be used for calculating gratuity & leave for the employees.
Please note our company is a consultancy firm & we are based in U.A.E, here also gratuity is calculated on basic salary
only & leave will be once in 12 months for all expatriates. I need excel sheet with required formulas for the calculation.
Awaiting your response.
Regards,
From Oman, Muscat
Could you please suggest excel format that can be used for calculating gratuity & leave for the employees.
Please note our company is a consultancy firm & we are based in U.A.E, here also gratuity is calculated on basic salary
only & leave will be once in 12 months for all expatriates. I need excel sheet with required formulas for the calculation.
Awaiting your response.
Regards,
From Oman, Muscat
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