PF Computation for Basic Pay and DA
I am working in an IT company. We have just enrolled for PF, and I wanted to know what percentage I should keep for basic + DA of the CTC. In my previous company, we used to consider:
- 35-50% as basic + DA
- 40% of basic as HRA
- 12% of basic as PF + DA (employer contribution)
- Rest of the components proportionally
Now, the PF agent of my current company is asking to take a minimum of 50% of CTC as Basic + DA for PF computation. Please let me know, can I consider 35% of CTC as basic Pay + DA for calculating PF.
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3I am working in an IT company. We have just enrolled for PF, and I wanted to know what percentage I should keep for basic + DA of the CTC. In my previous company, we used to consider:
- 35-50% as basic + DA
- 40% of basic as HRA
- 12% of basic as PF + DA (employer contribution)
- Rest of the components proportionally
Now, the PF agent of my current company is asking to take a minimum of 50% of CTC as Basic + DA for PF computation. Please let me know, can I consider 35% of CTC as basic Pay + DA for calculating PF.
Acknowledge(0)Amend(0)
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Clubbing of allowances with basic pay under PF Act.pdf
CTC CALCULATION SHEET.xls