[email protected]
Hr Personnel Manager
Deputy Manager Hr
+2 Others

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Dear all...

As we all know that Minimum Wages should be equal to Basic + D.A...

Please provide me suggestion.......

1. If employee Basic + DA means it is more than PF Ceiling limit i.e 6500/-

Basic is 6200 and D.A is 3300.then it becomes 9500/-.

In this regards i have a simply question..lots of professional says Pf applicable on Basic and somebody favour in Basic + DA.

In above salary Basic+ DA=9500.which is more then 6500 pf ceiling limit, but basic is less than 6500 so tell me whether pf will deduct on basic only and why....because we are also giving can we exempt from pf deduction..

2. if we providing Basic, DA , HRA, Conveyance..then Overtime calculation will be done basic only or Basic + DA(Both)..

3. When employee complete 5 years then he eligible for gratuity...our compensation struture is basic, DA, HRA, Conveyance..

so computation of gratuity will be on Basic only or Basic+DA(both).

Because i heard lots of professional that gratuity will be paid on Basic or somebody says Basic+ DA-if employer compensation structure are Basic, DA , HRA, Conveyance..

provide me your adequate suggestion..

Your co-operation in this regards shall be appreciable.


From India, Chandigarh
Dear Vikas,

Greetings for the day,

Answer for the query cited below :

1) It is true that minimum wages is the component of basic+da, secondly EPF is applicable on the same .As far as the ceiling of Rs. 6500/- is concern it is only for EPS/EDLI., but the wages fall under that category the deduction should be must. Once anyone become the member of EPF/EPS scheme, the opportunity of the same can't be withdrawn during the service period. Secondly it is solely depend on the employer that he is willing to deduct the EPF on actual basic+da or limited upto the ceiling Rs. 6500/-. If the EPF deduction is on actual basic +da then the EPS/EDLI contribution should be limited upto Rs. 6500/- or limit the same upto RS. 6500/- whatever be the basic.

2) The calculation of OT will be on gross salary instead of Basic+da and should be twice the rate of wages, formula should be Gross salary/26/8 * ot hrs. * 2 .

3) Compution of gartuity should be basic +da (actual) and formula should be basic+da/26 * years of service * 15 and payment of the same should be after completion of 5 yrs. of service.

Thanks & Regards,


Sumit Kumar Saxena

From India, Ghaziabad
Thanks Mr. Sumit...
1. my question was My Basic 6200 and DA 3300=total 9500.
So in this case we can exempt from PF or not.Because BASIC + DA Showing more than 6500.
So i am legally compelled or not to deduct pf..
2. Secondly i heard most of time Overtime given on Basic+ DA(Twice of working hours).
Is it company policy that they are giving overtime on gross salary.

From India, Chandigarh
Dear Vikas,
*PF always calculated on Basic & DA (As you have DA in your salary structure).
So PF will be 12% of (Basic+DA).
exemption from PF:-
If that employee had never been member of EPF, means PF was not deducted in his previous company and his basic is more than 6500 then he has option whether to become a member of EPF or not.
But, if he is already EPF Member then you have to deduct his PF.
Only you have choice to restrict his PF to 780 (i.e 6500* 12%)

From India, Mumbai
Dear Vikas,
Greetings for the day,
1) If basic+da exceeding to Rs. 6500/- then employee should be exempted.
2)Payment of ot should be twice rate of gross salary.
Thanks & Regards,
Sumit Kumar Saxena

From India, Ghaziabad
hello all...
it means that if employee has never been a member of pf earlier...and his starting Basic+DA> 6500...(Basic 6200 and DA 3300)..
As per your suggestion he is exempted from Pf Deduction...It does not matter even his Basic less than 6500...Because his company also giving DA to him....And His BASIC + DA >6500 i.e 9500.....
Am I Right now...

From India, Chandigarh
hello seniors.... it seems to be low response as i never expected from all of you... please suggest me on my pf querry.
From India, Chandigarh
Dear All,
I am Shashi Bhusan Mishra from Bhubaneswar, Odisha, I am providing service for EPF withdraw. Those who are facing problems to withdraw their EPF. It is profession to help them and I will charge on my Service. If any body need my help then please contact to my mail id .
I assure you to withdraw you epf anywhere in Regional EPF office. I make documents on behalf of you and sign. from you and submit to the concern EPF office.
Please contact with me for your EPF withdraw. My mobile no is 09937894045.

From India, Gwalior
Respected, Its come to me from sources that the selling of pf deduction is now 15000 ,Instead of 6500 w.e.f. 1st April true ?? Kamlesh Pandya (Proprietor ) Sai Industrial Services
From India, Vadodara
Dear sir, Greetings for the day, We are still waiting for the same, wait till the new government sworn in. Thanks & Regards, From, Sumit Kumar Saxena
From India, Ghaziabad
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co