Dear Members
I would appreciate if anyone could clarify the query.
A company is deducting PF @ 12% on full basic (Ex: Gross Salary Rs.24000, Basic Rs.12000, HRA Rs.6000, Conveyance Rs.800, special allowances Rs.5200). PF is deducted @ 12% of Rs.12000 = Rs.1440 and the same is paid by the Employer as is contribution Rs.1440. The Total Contribution for that employee is Rs.2880. Now the employees are requesting the management to reduce the maximum contribution to Rs.780 with restricted to Basic Salary of Rs.6500.
The company is willing to do the same but without changing the basic salary Rs.12000.
Now the Contribution to PF will be Rs.780+780 = 1560.
Please let us know whether the company can change to the new or it as to follow the old.
If it’s new what are rules to be followed.
If it\'s old why it\'s to be followed
Thank you very in advance
Sekar
I would appreciate if anyone could clarify the query.
A company is deducting PF @ 12% on full basic (Ex: Gross Salary Rs.24000, Basic Rs.12000, HRA Rs.6000, Conveyance Rs.800, special allowances Rs.5200). PF is deducted @ 12% of Rs.12000 = Rs.1440 and the same is paid by the Employer as is contribution Rs.1440. The Total Contribution for that employee is Rs.2880. Now the employees are requesting the management to reduce the maximum contribution to Rs.780 with restricted to Basic Salary of Rs.6500.
The company is willing to do the same but without changing the basic salary Rs.12000.
Now the Contribution to PF will be Rs.780+780 = 1560.
Please let us know whether the company can change to the new or it as to follow the old.
If it’s new what are rules to be followed.
If it\'s old why it\'s to be followed
Thank you very in advance
Sekar