Hi !!
I have one query that if a employee having total salary of 18000 and his basic is suppose 8000 so is he is eligible to opt out from pf?
PF is considered on total salary or on the basic like total is above 15K so he can opt out from PF but basic is only 8K so pf should be there I have confusion in this part kindly suggest me with solution.

From India, Indore

Get Empowered With Critical Leadership Skills That Drive Change →
Promoted: XLRI Leadership & Change Management
As per sec 2 of EPF & MP (Amendment) proposed Bill 2019, PF to be computed from Basic, DA & Retaining Allowance and do not compute from Bonus, Conveyance, HRA, Overtime Allowance & Gratuity. Further refer the bill for more clarification, herewith enclosed.
M. Palani

Attached Files (Download Requires Membership)
File Type: pdf Amendments to RPF Act-Proposed.pdf (863.3 KB, 68 views)

In the proviso of the said amendment it has been mentioned that other allowances if more than 50% of wage (basic wage) that will add back to wage . The concept is 2/3 rd wage and 1/3rd other allowances of the monthly gross. Say for example on a monthly gross of 10,000/- better to have wage 70% i.e 7000/- and other allowances 30% i.e 3000/-. Let suppose it is reversed and wage is 3000/- and other allowances is 7000/-, then others allowance will be 50% of wage i.e 1500/- and wage will be 3000/- + 5500/-( 7000/- - 1500/- ) = 8500/-.
S K Bandyopadhyay (Howrah, WB)

From India, New Delhi

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHRô

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server