PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Partner - Risk Management
Labour Laws Consultants
Srinath Sai Ram
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What I understand from your query is that the salary is bifurcated into certain allowances in your establishment and someone is not interested for the deductions of EPF and you want to fix his all inclusive wages / salary as Basic wage to avoid EPF.
First of all, if an employee insists for non deduction, you should convince him and even if he is still adamant, consider otherwise but it can not be termed as fair. It is definitely termed as unfair practice and moreover, the inspecting authority can raise demand of contribution at any later stage.
From India, Delhi
Srinath Sai Ramyou have to obtain EPF Form 11 (New) from Employees at the time of joining.exclusion of Employee from the Purview of EPF will be as per the genuine information provided in the Form.Employer has to follow due procedure before excluding an Employee under EPF.
From India, New Delhi
saswatabanerjeeThere is no rule that states the salary needs to be broken into smaller components.
So there is nothing to stop you from putting all salary in basic.
However, the same must match with your salary structure
If others have 5 components and this one employee has just basic, it will not be accepted by the department.
Also remember that items like bonus and gratuity is on basic. So you get a cascade im0act on it later
From India, Mumbai