Dear Neha..
1. If Basic+DA is less than 6500 (if employee is not a member of PF or a member of PF prior)
a. <Rs. 6500/- there is no PF is not possible.
b. <Rs. 6500/- whatever the amount calculation is fixed as 12% of basic & DA
2. If Basic+DA is greater than 6500 (if employee is not a member of PF or a member of PF prior)
A. this is very hypothetical situation. Once employee becomes member of PF he has to be member till resignation from the employment.
3. What percentage of Basic should be of gross salary
A. 50%-60% in Metros
B. 40%-50% in non metros
4. Can we restrict to PF contribution to 780p.m. irrespective of basic wage.
A. Its possible only when you have ceased basic @ 6500/-
As 6500 amount is revised to 15000; does it all go in same way for 15000 as well.
This is under discussion...not implemented yet.
Feel free to ask your query if any.
Rgds
attribution https://www.citehr.com/501708-provid...#ixzz39Q0rAnI6
From India, Mumbai
191. If Basic+DA is less than 6500 (if employee is not a member of PF or a member of PF prior)
a. <Rs. 6500/- there is no PF is not possible.
b. <Rs. 6500/- whatever the amount calculation is fixed as 12% of basic & DA
2. If Basic+DA is greater than 6500 (if employee is not a member of PF or a member of PF prior)
A. this is very hypothetical situation. Once employee becomes member of PF he has to be member till resignation from the employment.
3. What percentage of Basic should be of gross salary
A. 50%-60% in Metros
B. 40%-50% in non metros
4. Can we restrict to PF contribution to 780p.m. irrespective of basic wage.
A. Its possible only when you have ceased basic @ 6500/-
As 6500 amount is revised to 15000; does it all go in same way for 15000 as well.
This is under discussion...not implemented yet.
Feel free to ask your query if any.
Rgds
attribution https://www.citehr.com/501708-provid...#ixzz39Q0rAnI6
From India, Mumbai
Dear all this provident fund which has been issued on 14/07/2014 will be applicable from 01/10/2014 as per the pf authorities of chennai
From India, Chennai
From India, Chennai
Dear Neha,
I feel the members have given correct and adequate information on the PF contribution query.
So far as the query on % of basic to Gross in Concerned, based on experience in Compensation & Benefits, Its best to retain Basic at minimum 40% for high salaried and minimum of 50% for junior levels especially those who come under PF. In most of the companies I've seen these benchmarks and they would serve well in terms of long term compliance initiative.
Point in case being - recently PF has asked its officers to check if companies are avoiding PF by lowering the basic+DA wage of employees and thereby trying to reduce employer's PF liability. Also please find the link to a popular news website which has an article on the same.
Hope this helps.
Warm Regards,
Deena Jagasia
From India, Mumbai
I feel the members have given correct and adequate information on the PF contribution query.
So far as the query on % of basic to Gross in Concerned, based on experience in Compensation & Benefits, Its best to retain Basic at minimum 40% for high salaried and minimum of 50% for junior levels especially those who come under PF. In most of the companies I've seen these benchmarks and they would serve well in terms of long term compliance initiative.
Point in case being - recently PF has asked its officers to check if companies are avoiding PF by lowering the basic+DA wage of employees and thereby trying to reduce employer's PF liability. Also please find the link to a popular news website which has an article on the same.
Hope this helps.
Warm Regards,
Deena Jagasia
From India, Mumbai
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Provident fund.zip
PROVIDENT FUND.rar
PROVIDENT FUND.doc