I would like to know what the basic wages are in the IT sector and what should be the minimum basic amount (is it still $6,500) from which the PF of 12% can be deducted. Has this amount been updated? What is the minimum basic wage for an employee, and how is their PF calculated? Is $6,500 still the acceptable amount, or has it been revised?
From India, Delhi
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From India, Delhi
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Clarification on PF Basic Wage Calculation
Your question is somewhat confusing regarding what you need from us. The PF limit has increased to 15,000 from 6,500. Now, the question arises: what should be the basic for PF purposes?
There are certain categories of workers who receive minimum wages, so for them, you are required to deduct PF on at least the minimum wages. Now, the question arises for higher salary individuals. Their basic will be determined based on their CTC; generally, 40% of CTC is taken as basic. For instance, if someone's CTC is 60k, then you can show the basic as 24k, and in this case, PF will be deducted on 15k.
Thank you.
From India, Delhi
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174Your question is somewhat confusing regarding what you need from us. The PF limit has increased to 15,000 from 6,500. Now, the question arises: what should be the basic for PF purposes?
There are certain categories of workers who receive minimum wages, so for them, you are required to deduct PF on at least the minimum wages. Now, the question arises for higher salary individuals. Their basic will be determined based on their CTC; generally, 40% of CTC is taken as basic. For instance, if someone's CTC is 60k, then you can show the basic as 24k, and in this case, PF will be deducted on 15k.
Thank you.
From India, Delhi
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PF Judgment Supreme Court Basic Wages (1).pdf