Definition Of Salary For PF

raviaguva
With recent amendment Employess with salry less than 15K are mandated to contibute to PF if number of employees in the organisaton are 20 or more.
My doubt in calculating 15000 should we include HRA and other allowances like conveyance ,medical reimburesement and uniform allowance or exclude it.
Can we exclude allowances like conveyance , medical reimbursement, uniform allowance , along with HRA for calculating 12% contribution to PF fund.
Can any one clarify, pl.
korgaonkar k a
Dear Raviaguva,
PF contribution is payable on Basic, DA and retaining allowance if any.
HRA, other allowances like conveyance, medical reimbursement, uniform etc. does not include in above i.e. Basic, DA and retaining allowance.
However, if your Basic and DA component is less than the MW rates as declared by the appropriate government to your category of employment, you are liable to pay contribution including on all allowances.
raviaguva
Dear Keshav Sir,
Thanks for the info , i will take Basic and DA .
May I know which of the below I should take for calculating the cutoff of Rs.15k for de
1)
raviaguva
Dear Keshav Sir,
Thanks for the info , I will take Basic and DA for calculating 12% contribution.
May I know which of the below I should take for calculating the cutoff of Rs.15k for deciding who falls in the PF net.
1)Basic+DA+HRA+all other allowances=Gross salary
2)Basic+DA+all other allowances (excluding HRA)
3)Basic+DA(only) like in calculating pf conribution of 12%
Can you kindly give examples of Retaining allowance.
Thanking you in anticipation,Sir,
warm regards,
Ravi
korgaonkar k a
Dear Ravi ji,
You have to consider only Basic + DA for eligibility of PF membership. However, please note that:
1. If an employee is already a member of PF earlier, he should be covered under PF even his B+DA is above Rs. 15000.
2. Once a member of PF he is a member of PF even his B+DA is is increased and exceeds Rs. 15000.
Retaining allowance is given to employee just to retain him in employment when the employer is enable to provide work to him through out. This system of paying retaining allowance, I heard, is / was in existence in West Bengal.
ra7881
Dear Keshav Sir,
Thank you very much for a very clear explanation on the subject. This is something that i needed to know for a very long time.
Appreciate your efforts sir!
Thank you,
Ravi
Jadughar Mera Naam GO Ga
Dear Members,
If the basic salary of employee is below the MW than we have to take Basic+Special allowance for the PF Calculation, am i Correct.
please clarify the same also.
Thanks in Advance,
Jadughar
hemantkondhalkar
Dear Team,
I too have one query that,
What are the wages component for deduction of PF admin charges, EDLI contribution & EDLI admin charges?
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