Dear HR professionals,
I am a fresh MBA graduate joined an MNC recently. This is regarding PF calculation; I read that the PF is calculated on Basic as defined;
{(b) "basic wages" means all emoluments which are earned by an employee while on duty or 6*[ on leave or on holidays with wages in either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include--
(i) the cash value of any food concession;
(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;}
In my company the pf is calculated 12% on Basic+DA and my seniors support this.
Kindly enlighten me what is the correct method.
Spear
I am a fresh MBA graduate joined an MNC recently. This is regarding PF calculation; I read that the PF is calculated on Basic as defined;
{(b) "basic wages" means all emoluments which are earned by an employee while on duty or 6*[ on leave or on holidays with wages in either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include--
(i) the cash value of any food concession;
(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;}
In my company the pf is calculated 12% on Basic+DA and my seniors support this.
Kindly enlighten me what is the correct method.
Spear