Hi, We have recently got an issue come with a new client this w.r.t PF. Under PF, we have a threshold of INR 15K as the limit for PF purposes. Now there are days when the employee is absent so while the Basic Salary is INR 19K(Minimum Wage) and on a pro-rata basis the basis for the month comes to 18 K hence we still compute PF on 15 K while as per the client, they are stating that Basic should 15000/30 days * the number of days present which is around 14.5 K. We have highlighted basis the PF definition capping 15K doesn't mean 15 K is default basic. Let me know what is the legal standing on this.
From India, Chennai
From India, Chennai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Until and unless after adjustment of LWP , the Basic is below 15,000/- , PF contribution should be on 15,000/- basis. There is no concept in any labor laws that default basic is 15,000/-.
Moreover, PF contribution as per Apex court verdict should be on monthly gross - HRA. Therefore, after LWP if the basic is below 15,000/- but adding other allowances it is more than 15,000/- , PF contribution should be on 15,000/- basis.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
300Moreover, PF contribution as per Apex court verdict should be on monthly gross - HRA. Therefore, after LWP if the basic is below 15,000/- but adding other allowances it is more than 15,000/- , PF contribution should be on 15,000/- basis.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
Circular Dated 28-10-2016 for settlement of PF Death Case Claims within 7 days.pdf