Structuring a 3.5 Lakh Salary Without PF: How Do I Handle Taxes and Compliance?

I need to structure a salary of 3.5 lakhs without PF. My company has 50 employees. I require a salary slip and the structure details for 3.5 lakhs. How much tax should be deducted?

Company Policy on PF

My company is a trading firm, and they do not have a policy of PF. Is it necessary to have PF?

New to HR: Seeking Guidance

I am new to HR and unfamiliar with compensations and benefits. Please enlighten me!

Regards

PF Exemption for Employees

PF is exempt for any employee whose salary is above Rs. 6,500, provided they do not have an existing PF account. This exemption applies to all companies where 20 or more employees are working. Once PF applies, it will continue to apply.

If you do not wish to pay PF, you will need to ensure that everyone has a salary above Rs. 6,500 per month (Basic + DA only) and take a declaration from them in the prescribed form (given in the PF Act) asking for exemption. They also need to declare that they do not have any existing PF account from previous employment.

The declaration should be in Form II for PF exemption. Every employee with a basic salary above 6,500, who is not covered under PF, should fill out Form II.

Government Order on PF Payment

There is a Government Order (GO) which clearly states that the employer has to pay PF for employees whose basic salary is above 6,500. The exemption is applicable for employees who were not covered under PF in their previous companies as well.

Please find the attached Form II and GO copy.

Regards,
Karthik

Hi all,

I need to structure a monthly salary of 25,000 but without PF, HRA, or DA. I received 15,000 in a cheque, and the rest in cash. I require a salary slip and a breakdown of the 25,000 monthly salary. How much tax should be deducted? My company is a trading firm, and they do not have a PF policy. Is it necessary to have PF?

Thank you.