There is always a question in splitting the Provident Fund 1. Can we have a 60% of the Monthly gross as Basic & DA for PF Contributions. Lets have opinion
From India, Chennai
46From India, Chennai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Dear Rajan,
You can have any amount as basic & DA which is more than minimum wages. Please note, ceiling contribution for PF is Rs. 15,000/- thus contribution of employer above Rs. 15000 /- is solely dependent on employer and employee if they wish to do so.
You can have any amount as basic & DA which is more than minimum wages. Please note, ceiling contribution for PF is Rs. 15,000/- thus contribution of employer above Rs. 15000 /- is solely dependent on employer and employee if they wish to do so.
Dear Member,
Wherever the Minimum Wages as Applicable, there should not be split in Basic and DA in terms of percentile Calculation. It is only an assumption the Basic and DA shall be on percentage basis. No labour legislation recommends to have Basic and DA on percentage basis. At the same time, the social security benefits like EPF, Gratutity and bonus computations are based on the "Basic and DA" Wages.
If the employer prefers to contribute to EPF more than the cap limit (15,000), then we have to think of percentile based Basic and DA in other case it becomes meaningless.
From India, Madras
Wherever the Minimum Wages as Applicable, there should not be split in Basic and DA in terms of percentile Calculation. It is only an assumption the Basic and DA shall be on percentage basis. No labour legislation recommends to have Basic and DA on percentage basis. At the same time, the social security benefits like EPF, Gratutity and bonus computations are based on the "Basic and DA" Wages.
If the employer prefers to contribute to EPF more than the cap limit (15,000), then we have to think of percentile based Basic and DA in other case it becomes meaningless.
From India, Madras
Minimum Wages Basic-DA.xls
Basic+DA 28_10_2010-MW Maharashtra.pdf