With the recent amendment, employees with a salary less than 15K are mandated to contribute to PF if the number of employees in the organization is 20 or more.
My doubt is in calculating 15000, should we include HRA and other allowances like conveyance, medical reimbursement, and uniform allowance, or exclude them?
Can we exclude allowances like conveyance, medical reimbursement, uniform allowance, along with HRA for calculating the 12% contribution to the PF fund?
Can anyone clarify, please.
From India, Hyderabad
Acknowledge(0)
Amend(0)
My doubt is in calculating 15000, should we include HRA and other allowances like conveyance, medical reimbursement, and uniform allowance, or exclude them?
Can we exclude allowances like conveyance, medical reimbursement, uniform allowance, along with HRA for calculating the 12% contribution to the PF fund?
Can anyone clarify, please.
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Raviaguva,
PF contribution is payable on Basic, DA, and retaining allowance if any. HRA, other allowances like conveyance, medical reimbursement, uniform, etc., do not include in the above, i.e., Basic, DA, and retaining allowance. However, if your Basic and DA component is less than the MW rates as declared by the appropriate government for your category of employment, you are liable to pay contributions, including on all allowances.
From India, Mumbai
Acknowledge(0)Amend(0)
2584PF contribution is payable on Basic, DA, and retaining allowance if any. HRA, other allowances like conveyance, medical reimbursement, uniform, etc., do not include in the above, i.e., Basic, DA, and retaining allowance. However, if your Basic and DA component is less than the MW rates as declared by the appropriate government for your category of employment, you are liable to pay contributions, including on all allowances.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Keshav Sir, Thanks for the info , i will take Basic and DA . May I know which of the below I should take for calculating the cutoff of Rs.15k for de 1)
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Keshav Sir,
Thank you for the information. I will consider Basic and DA for calculating the 12% contribution. Could you please clarify which of the following options I should consider when determining the cutoff of Rs. 15k to decide who falls under the PF net:
1) Basic+DA+HRA+all other allowances = Gross salary
2) Basic+DA+all other allowances (excluding HRA)
3) Basic+DA (only) as used in calculating the PF contribution of 12%
Additionally, could you provide examples of Retaining allowances?
Thank you in anticipation, Sir.
Warm regards,
Ravi
From India, Hyderabad
Acknowledge(0)Amend(0)
Thank you for the information. I will consider Basic and DA for calculating the 12% contribution. Could you please clarify which of the following options I should consider when determining the cutoff of Rs. 15k to decide who falls under the PF net:
1) Basic+DA+HRA+all other allowances = Gross salary
2) Basic+DA+all other allowances (excluding HRA)
3) Basic+DA (only) as used in calculating the PF contribution of 12%
Additionally, could you provide examples of Retaining allowances?
Thank you in anticipation, Sir.
Warm regards,
Ravi
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Ravi ji,
You have to consider only Basic + DA for eligibility of PF membership. However, please note that:
1. If an employee is already a member of PF earlier, he should be covered under PF even if his B+DA is above Rs. 15000.
2. Once a member of PF, he is a member of PF even if his B+DA is increased and exceeds Rs. 15000.
Retaining allowance is given to an employee just to retain him in employment when the employer is unable to provide work to him throughout. This system of paying retaining allowance, I heard, is/was in existence in West Bengal.
From India, Mumbai
Acknowledge(0)Amend(0)
You have to consider only Basic + DA for eligibility of PF membership. However, please note that:
1. If an employee is already a member of PF earlier, he should be covered under PF even if his B+DA is above Rs. 15000.
2. Once a member of PF, he is a member of PF even if his B+DA is increased and exceeds Rs. 15000.
Retaining allowance is given to an employee just to retain him in employment when the employer is unable to provide work to him throughout. This system of paying retaining allowance, I heard, is/was in existence in West Bengal.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Keshav Sir, Thank you very much for a very clear explanation on the subject. This is something that i needed to know for a very long time. Appreciate your efforts sir! Thank you, Ravi
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Dear Members,
If the basic salary of an employee is below the minimum wage, then we have to consider Basic+Special allowance for PF calculation. Am I correct? Please clarify the same.
Thanks in advance,
Jadughar
From India, Mumbai
Acknowledge(0)Amend(0)
If the basic salary of an employee is below the minimum wage, then we have to consider Basic+Special allowance for PF calculation. Am I correct? Please clarify the same.
Thanks in advance,
Jadughar
From India, Mumbai
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Salary Sheet & PF PT Calculation & Challan Nov 2010.xls