From India, Pune
However I am in anticipation of some more suggestions on the discussed topic from my other senior colleagues like Purohit ji.t
From India, Delhi
There is another question on the latest increase from Rs.6500/- of Rs.15000/-
If an employee has salary of more than Rs.40,000/- per month and his basic is only Rs.10,000/- (remaining amount of his salary is adjusted towards HRA, Conveyance, Special Allowance etc...). Now as per the new amendment do we need to enhance his basic pay to minimum Rs.15000/- ?
Kindly share your opinion at the earliest
From India, Bangalore
Your query is advised as under :-
You can split his salary of Rs.40000 as per following formula.
1. Basic salary 50 % .. 20000
2. HRA 25 % 10000
3. Conveyance 15 % 6000
4. Spl.Allowance 10 % 4000
Now you can calculate his Provident Fund on Rs.15000 as per ceiling @ 12 % or actual basic salary at management discretion. Whether to restrict to ceiling or not.
This is the formula where most of the establishments are being followed. Contributing the Provident Fund above ceiling or at actual basic salary is also accepted by the EPFO. Because of this you need not to bring his basic salary for Rs.15000 as there is option for contributing as per recent notification issued by EPFO from 1st Sep, 2014.
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant
From India, Bidar
From India, Vadodara