Dear seniors, Please help me with PF. I have many workers in my organization who have nearly ₹1800 PF deduction every month. Can I reduce this deduction by changing the salary component? If yes, then how?
From India, Vadodara
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From India, Vadodara
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Yes, you can reduce the pf deduction amount. At First, you have to show their basic salary less than 15k that help in reducing pf amount.
From India, Delhi
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From India, Delhi
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This is not straightforward mathematics. As per the PF Act, it is not possible to reduce the salary to bring down PF contributions. However, it is possible if the organization is paying PF contributions above the statutory limit, i.e., above 15k per month. It is not allowed to decrease the salary below 15k per month or below the actual salary, which is already below 15k per month.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
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http://www.usdhrs.in – To Strive towards excellence with effort and integrity
From India, New Delhi
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367S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
http://www.usdhrs.in – To Strive towards excellence with effort and integrity
From India, New Delhi
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Legal Clarification on Termination for Criminal Case & PF Contribution Reduction.pdf