Can I Keep My Old PF Contribution Structure at My New Job Without Legal Issues?

cool_shish
Hi All, I have recently joined a new company. In my previous organization, the PF contribution was Rs. 780 (12% of Rs. 6500) from both employer and employee. However, the "Basic" component was much more than Rs. 6500.

PF Contribution Structure Inquiry

What I want to know is, can I have this same structure with my new company? Will there be any legal obligations for my company or me if we do this?

Different "Basic" for PF and Income Tax

Also, can I have different "Basic" for PF and income tax calculation like I had in my previous company?

If possible, I would like to back this up with documentation so that my new company can implement this.

Thanks...
Saad_Masood
PF Contribution Details

The PF contribution is 12% of the basic salary from both the employee and the employer. For the calculation, the maximum limit of the basic salary is Rs 6500/-. This means that even if the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, which is Rs 780. However, if an employee desires, they may voluntarily contribute more than 12%. Apart from this, an employer also has to pay some administration charges.
cool_shish
Thanks for the reply, Saad. However, what I want to know is if I have a capping of Rs. 780 as a contribution, will I also have to keep my "basic" as Rs. 6500 for taxation, or can it exceed that and the PF still be Rs. 780?
abbasiti
Ceiling Salary for PF Contribution

The ceiling salary for PF contribution is Rs. 6500. However, for Income Tax purposes, the actual salary must be considered.

Regards,
Abbas.P.S
cool_shish
Does that mean I can have Rs. 25,000 as Basic and still have Rs. 780 as PF? Is there any document to support the same? My company is asking for some documentation on the same.
Saad_Masood
If the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, which is Rs 780. However, if an employee desires, they may voluntarily contribute more than 12%. Apart from this, an employer also has to pay some administration charges.
cool_shish
I understand that part; however, the confusion is: can my basic be Rs. 25,000 and still I am giving PF of Rs. 780? During tax calculation, can I have my basic as Rs. 25,000, and is there any document to support this?
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