I am working in an IT company, we have just enrolled for PF, wanted to know of what percentage should I keep 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 the components proportionally
Now the PF agent of my current company is asking to take minimum 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.
what is meant by the term "rest of components" except Conveyance Allowance ( IT ceiling 1600 pm) , Children Education Allowance (maximum 100 pm for two children) and medical insurance, what else is there which should not be part of basic?
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