Hi All,
I am a finance and a HR consultant. I am practising the following procedure:
This is a scenoria where the basic wages is more than Rs.6500/- and the employee opts to limit his contribution to Rs.6500/- i.e. 780/- against Pf and Rs.541/- against Family Pension fund.
Let us assume that his notional basic is Rs.20000/- and he joins in the middle of the month (say worked only for 15 days during the month of joining). His earned basic is Rs.10000/- and the software limits the contribution to Rs.6500/-, which in my opinion is wrong.
The basis should be on notional basic and not on earned basic. If you look at the way RPFC calculates, it is clearly based on work days and not on this logic. It is also clearly explained in the PF act.
same logic applies for a loss of pay also.
Can any of you tell me which one is right?
Thanks a lot,
Hema
I am a finance and a HR consultant. I am practising the following procedure:
This is a scenoria where the basic wages is more than Rs.6500/- and the employee opts to limit his contribution to Rs.6500/- i.e. 780/- against Pf and Rs.541/- against Family Pension fund.
Let us assume that his notional basic is Rs.20000/- and he joins in the middle of the month (say worked only for 15 days during the month of joining). His earned basic is Rs.10000/- and the software limits the contribution to Rs.6500/-, which in my opinion is wrong.
The basis should be on notional basic and not on earned basic. If you look at the way RPFC calculates, it is clearly based on work days and not on this logic. It is also clearly explained in the PF act.
same logic applies for a loss of pay also.
Can any of you tell me which one is right?
Thanks a lot,
Hema