New HR Executive Struggling with Salary Structure and PF Contributions – Need Guidance!

chandrakant.wagh
I have recently joined as an HR Executive in a small company. The earlier HR did not hand over the responsibilities properly, due to which I am unable to find the exact calculation basis of the salary. However, I tried to create a format of the salary structure and shared it with my seniors.

Salary Structure and Challenges

The salary range in my company varies from 10k to 70k per month, depending on the role and designation of the employee. With my format, I attempted to minimize the basic salary as the gross income increases. However, there was another argument that if the basic salary exceeds 6500 for employees whose salary is up to 35k, then the company would have to contribute more to their PF, and they do not want to contribute higher amounts.

Kindly guide me.

Regards.
Premkumar Nair
As per the EPF & MP Act, the monthly employee contribution is to be deducted from the salary at 12% on a maximum wage ceiling of Rs. 6,500 until August 2014 and deposited with a matching employer contribution. After September 1, 2014, the wage ceiling has been raised to Rs. 15,000. Hence, the contributions are now restricted to 12% of Rs. 15,000 only. Please refer to the Act and visit the EPFO website for more information.

With best wishes,
Regards
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