A contract for hiring of manpower is done with my company and contractor.
Contractor is paying salary to his employees and my company is reimbursing the same with employer PF and commission on wages.
THE BASIC WAGES OF HIS EMPLOYEE IS RS. 7254/- AND HE IS DEDUCTING RS. 870/- ON ACCOUNT OF PF.
but he is depositing PF Amount to PF Department is Rs. 780/- only. (Limited to 12% of 6500/-).
Kindly suggest if he is doing wrong practice or there is any rule for deduction of PF not more than Rs.780/- that is 12% of Rs.6500/-
Contractor is paying salary to his employees and my company is reimbursing the same with employer PF and commission on wages.
THE BASIC WAGES OF HIS EMPLOYEE IS RS. 7254/- AND HE IS DEDUCTING RS. 870/- ON ACCOUNT OF PF.
but he is depositing PF Amount to PF Department is Rs. 780/- only. (Limited to 12% of 6500/-).
Kindly suggest if he is doing wrong practice or there is any rule for deduction of PF not more than Rs.780/- that is 12% of Rs.6500/-