Dear Seniors,
We have recently raised the salaries of our employees. However as per the new PF rules, PF deductions should be done on atleast the minimum wages.
The current minimum wages in Gujarat is Rs. 4550/-
As per the new PF rules if I have to calculate the salary of an employee having a CTC of Rs. 5000/- or Rs. 4750?- how do I go about it?
The various salary heads in our company are :
Basic (60% of CTC), HRA (40% of Basic) & the rest is treated as other allowances which together form the gross salary of the employee.
Out of this 12% of basic is deducted as PF, ESI (1.75% of gross) and PT as applicable.
If the CTC of an employee is Rs. 4750 or 5000/- how do I consider all the components of employee earnings (Basic will now become 4550/- (Minimum wages as per PF rules) and how do I work out the salary structure.
Please guide
We have recently raised the salaries of our employees. However as per the new PF rules, PF deductions should be done on atleast the minimum wages.
The current minimum wages in Gujarat is Rs. 4550/-
As per the new PF rules if I have to calculate the salary of an employee having a CTC of Rs. 5000/- or Rs. 4750?- how do I go about it?
The various salary heads in our company are :
Basic (60% of CTC), HRA (40% of Basic) & the rest is treated as other allowances which together form the gross salary of the employee.
Out of this 12% of basic is deducted as PF, ESI (1.75% of gross) and PT as applicable.
If the CTC of an employee is Rs. 4750 or 5000/- how do I consider all the components of employee earnings (Basic will now become 4550/- (Minimum wages as per PF rules) and how do I work out the salary structure.
Please guide