Our company is deducting EPF on 100% of the salary. For example, the salary of a worker is 14,000. The basic salary is also 14,000, and EPF deduction from the worker is 1,680, with the company also contributing the same amount. Now, the worker is requesting to deduct the minimum by setting the basic salary as 40% or 50%. My question is: what are the rules for this?
From India, Delhi
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From India, Delhi
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Deducting PF on gross salary is much more beneficial to the employee. He will get more return from Provident Fund, as equivalent amount shall be contributed by Company also.
From India, Aizawl
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651From India, Aizawl
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf