Hi Experts
In the case of mid month joining/leaving/absences or transfer scenarios how PF should calcualte.
Example : If employee gross is 20,000 P/M and he joins 15th of April 2013 then he is eligible for 10,000 for that month.
So PF for 30 days is 780 rs, But as employee joined on 15th of april his pf is calculation as 780/30= 26rs per day which is 26*15=390.
Is the above calculation is correct.
My client says even if Employee basic is more than 6,500 after mid joining it must deduct flat 780 and shld not consider prorate.
Can it legally happen.
Regard
Chandu
In the case of mid month joining/leaving/absences or transfer scenarios how PF should calcualte.
Example : If employee gross is 20,000 P/M and he joins 15th of April 2013 then he is eligible for 10,000 for that month.
So PF for 30 days is 780 rs, But as employee joined on 15th of april his pf is calculation as 780/30= 26rs per day which is 26*15=390.
Is the above calculation is correct.
My client says even if Employee basic is more than 6,500 after mid joining it must deduct flat 780 and shld not consider prorate.
Can it legally happen.
Regard
Chandu