Can a salary of 15,500/- be shown as Basic + DA = 15,000/- and HRA = 500/-? Will there be any issues from any authorities regarding the breakup? The employer wants to do it this way so that she does not incur PF liability.
From India, Bengaluru
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1From India, Bengaluru
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Salary Structure and Compliance
15,000/- Basic will be covered under the PF Act. It is better to set it at 15,100/- Basic+DA and 400/- as HRA. Please verify if there is an HRA Act (State Act) applicable. Some states have the House Rent Allowance Act, mandating a minimum of 5% of Basic + DA.
ESI will be applicable in this scenario.
From India, New Delhi
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15,000/- Basic will be covered under the PF Act. It is better to set it at 15,100/- Basic+DA and 400/- as HRA. Please verify if there is an HRA Act (State Act) applicable. Some states have the House Rent Allowance Act, mandating a minimum of 5% of Basic + DA.
ESI will be applicable in this scenario.
From India, New Delhi
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