PF Query [Thread 165398]

Hello,
We are a company paying PF at 12 % on the 40 % of the Gross salary i.e basic + DA is 40 % of gross. If the salary is rs 20,000/- 40 % of the Gross is basic +DA Rs 8000/- The PF insepctor who had visited the factory insists that it has to 60 % of the Gross towards Basic+DA. Is his view correct as from the reading of the Act, there is no clause under the PF Act which says that one shouold apply minimum 60 % of the Gross salary for contribution towards PF. Pl reply to this query urgently,
Regards,
P Bhaskaran

dear Bhaskran,
PF Inspector can not insists because pf deduction upper limit is rs 6500/= and you may make celling upto upper limit of pf deduction. as per my view he cann't force to u.

dear
for bifurcation of salary you take care of two things.
1.make sure that you are deducting PF on minimum wages of state.
2. for heigher salary as u have mentioned there is no sule that basic+DA should be 60 % and ask inspector to give in writing,it is your choice and you can make it 40% ,it should seems to be reasonable.
tks
j s malik