There are few practical questions while implementing this policy.
1) If basic salary of an Employee "A" is less than Rs.15000/-, How do we need to contribute for EPS ? is it 8.33% of the basic pay or Minimum of Rs.1000/- ?
2) If an Employee "B"s total gross salary is Rs.40,000/- and Basic is only Rs.10,000/- (25% of gross is basic) rest of the amount adjusted towards Special Allowance (excluding HRA,Conveyance, PF), how do we need to calculate the pensionable wage ? Do we need to change the calculations from the existing basic of Rs.10,000 to Rs.15000 ?
3) Is there any rule regarding what percentage of total salary should be basic ?
Experts kindly advice