Understanding EPF Deductions and Salary Structures: Are They Flexible or Fixed?

Dear Seniors,

EPF Deduction: Mandatory or Voluntary?

1) Is EPF deduction mandatory for all employees, or can it be made voluntary to increase one's take-home salary?

Salary Structure: Uniformity vs. Variability

2) Is it mandatory to have the same salary structure/breakup for all employees in company payroll, or can employees have different varying proportions of their salary as basic and the rest as an allowance? (For example, one gets 40% basic and 60% allowance, and another gets 70% basic and 30% allowance.)

Please guide me. Thank you.

For organizations with 20 or more employees, PF contribution is mandatory. When structuring salaries, it is advisable to maintain the same structure for all employees to prevent discrimination and confusion. Additionally, minimum wages must be taken into consideration.

Regards,
Rajeev Dixit