Dear all,
a nice information on PF and bifurcation of min wages. since this bifurcation notice has come into existence, I m still trying to find out an answer to my query. would request you all to look in to it and please reply if you can.
we all are aware that
1. min wages is basic+DA. ( as per the above comment, you can also add HRA to it, if you don't add, no issues)
2. as per the notification you cannot bifurcate min wages as it leads to less PF contribution. so PF should be paid on min wages only.
please note that there is one more fact that PF ceiling is Rs. 6500/ to contribute. if your salary is more that Rs. 6500, you need not to contribute in PF. now Delhi govt has again revised min wages effective from April 2011 wherein only unskilled category will earn less then 6500 which is Rs. 6422. it means you can calculate PF on 6422.
1) other categories will earn more then 7000 Rs. as min wages (for semi skilled it is 7098). so what we should do here. should we pay PF on only 6500 (ceiling) or 7098 (min wages) ?
2) if you pay PF on min wages which is now higher then the ceiling then where is the exemption from PF. Then you cannot exempt employees who are getting more then 6500 as basic salary. Please clear
Also please correct:
what if you put whole amount of min wages under one head (basic) only. does it make the difference if PF has to be calculated on whole amount....what is the need to divide it into basic and DA and calculate PF on two heads. as its only HR people who know that PF is calculate on Basic+DA. a common man only knows that it is calculated is on basic salary.
looking forward for responses from seniors in forum...please help.
regards,
Saunee
a nice information on PF and bifurcation of min wages. since this bifurcation notice has come into existence, I m still trying to find out an answer to my query. would request you all to look in to it and please reply if you can.
we all are aware that
1. min wages is basic+DA. ( as per the above comment, you can also add HRA to it, if you don't add, no issues)
2. as per the notification you cannot bifurcate min wages as it leads to less PF contribution. so PF should be paid on min wages only.
please note that there is one more fact that PF ceiling is Rs. 6500/ to contribute. if your salary is more that Rs. 6500, you need not to contribute in PF. now Delhi govt has again revised min wages effective from April 2011 wherein only unskilled category will earn less then 6500 which is Rs. 6422. it means you can calculate PF on 6422.
1) other categories will earn more then 7000 Rs. as min wages (for semi skilled it is 7098). so what we should do here. should we pay PF on only 6500 (ceiling) or 7098 (min wages) ?
2) if you pay PF on min wages which is now higher then the ceiling then where is the exemption from PF. Then you cannot exempt employees who are getting more then 6500 as basic salary. Please clear
Also please correct:
what if you put whole amount of min wages under one head (basic) only. does it make the difference if PF has to be calculated on whole amount....what is the need to divide it into basic and DA and calculate PF on two heads. as its only HR people who know that PF is calculate on Basic+DA. a common man only knows that it is calculated is on basic salary.
looking forward for responses from seniors in forum...please help.
regards,
Saunee