One of our employee in chandigarh branch is requesting for minimal deduction for PF & ESI. His salary is 12,000/-PM. Pls help me make a break up to give him maximum inhand salary and ensuring compliance with PF, ESI & Min wages act.
Also, pls help me clear these questions:
1. Can Basic pay be less than 50% for employees whose salary is less than 15K? If there is any stated rule, pls share.
2. Can entertainment allowance covered under ESI? whats the maximim cap on this?
3. Is special allowance/other allowance be part of PF contribution calculation?
4. Is there are any allowances that can be added in break up to avoid PF & ESI deduction amount?
From India, Delhi
1Also, pls help me clear these questions:
1. Can Basic pay be less than 50% for employees whose salary is less than 15K? If there is any stated rule, pls share.
2. Can entertainment allowance covered under ESI? whats the maximim cap on this?
3. Is special allowance/other allowance be part of PF contribution calculation?
4. Is there are any allowances that can be added in break up to avoid PF & ESI deduction amount?
From India, Delhi
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Clubbing of allowances with basic pay under PF Act.pdf
Basic Pay for EPF Contribution-re duction not permissible.doc x