PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Manager- Hr & Ir
Sabapathy Siva Sankar
Glidorany payout to employee which is regular in nature, Excluding HRA and medical is considered eligible for EPF,
email@example.comMy gross salary is 25000 what is my basic salary and can i. Will eligible for pf deduction
From India , Gurgaon
how can a third party make analyse the salary structure of any company or it's employees? it depends on the company polilcy, department can ask for the rules to be complied only.
if you have any specific query on the issue, post here to get reply
Sabapathy Siva SankarSir The easy way to calculate PF would be Consider 70% gross as eligibility. Example: If 10000 Rupees is the salary 70% would be 7000 Rupees. Calculate 12% on 7000 Rupees only.
From India, Chennai
PF is deducted not only basic salary which includes of other components like /food/conveyance/other allowances except HRA up to maximum of 15000/- as per the PF rules. PF inspection has been done in our company and PF authority has directed us to follow the same rule which has been following thereafter.
From India, Hyderabad
pcrao2011Please refer to < http://esewa.epfoservices.in/faq.php> to get a comprehensive idea about Employees Provident Fund. The spirit of this scheme also must be applicable to any other PF scheme the company may choose to subscribe to.
The following extract from the webpage may answer the question:
"43. WC.7: What is the amount of wages to be considered for PF contributions?
PF Contribution is payable on all emoluments payable in cash to an employee during the month excluding the following:- (i) House Rent Allowance (ii) Over Time Allowance (iii) Bonus (iv) Commission or any other similar allowance; and (v) Any presents made by the employer"
You can avoid a lot of headaches with PF inspection, if you keep as many employees as possible above the PF ceiling of
Rs 15000/-. The agenda of the government is to turn PF into some kind of social security scheme by somehow including all citizen into its ambit. We cant fight the system too long. The best option is to include employer contribution into CTC. Also HR managers tend to help employees get income tax exemptions by showing as much HRA as possible in the salary breakup. That may help the employee, but not the employer. Let employees do their own tax planning.
From India, Bangalore
pillaipHi, thanks to all for the inputs on the above discussion. It was to re-confirm how it can be followed in a better way with less employer liability. Thanks a lot.
From India, Bangalore
25000/- is gross or CTC
Basic ratio is 40-60%
What is ratio of your company, if your company basic ratio is 40% than =25000*40%= 10,000/-
if any query, you can call any time.
From India, Pune
Our salary structure contain the following
basic 40% of CTC
DA 10% of Basic
HRA 40% of Basic
Medical 1500 PM
Conveyance 1600 PM
Education Allowance 200 PM
And rest in other Allowance
Pls clarify on which above stated component the PF would be chargable
From India, Jaipur