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
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
334Moreover, 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
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Basic 4 pf.pdf