Basic Pay Is Alwayas 30% Of The Gross Salary ?

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Subir Chatterjee 1955
27th December 2016 From India, Kolkata

HELLO FRIENDS !
WILL U PLZ LET ME UNDERSTAND AS TO
A. WHETHER BASIC PAY IS ALWAYS 30 % OF GROSS SALARY .
B. WHETHER CONTRIBUTION TO EPF OF AN EMPLOYEE CAN NEVER BE LESS IF HE GETS LESS BASIC PAY/GROSS SALARY IN HIS NEW COMPANY
Awaiting reply from my HR experts,
Thanks & Regards

Glidor
27th December 2016

both concept is wrong
BASIC + DA + all other allowances, which are regular in nature, except HRA and Medical are subject to EPF ( capping of 15000 may be maintained by the employer)
EPF is deducted actual earnings by basic+ DA + others, if DA gets variable , then almost every quarter it get changed, in case of LOP or unpaid leave also the pay get lower and so is the EPF contribution.

ca.dilipsingh
27th December 2016 From India, Patna

what is the meaning of gross salary as per pf ecr format . give example.

Glidor
28th December 2016

@CA.Dulipsingh for ECR format gross salary is the figure which is to be taken for calculation of TDS purpose / Profession tax slab

Shrikant_pra
4th January 2017 From India, Mumbai

There is no act that declares PF as % of gross. Yet normally it is 30% or more.
PF is deducted @ 12% on basic+DA actually earned. Less of the sum, lesser will be of contributions.
Shrikant Prabhudesai

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