Dear All,
We are into restaurant industry in kerala.We have an employee strength of 248 and employees below 15000 are given pf,esi benefits.We have a split up of salary under various heads like Basic,DA,Washing Allowance,and Special allowance.Since ours is a restaurant industry we provide accommodation,food for employees as per minimum wages act we fixed the basic salary.Take the case of utility boy who draws a salary of 8000,his Basic would be 3200,DA-3500,washing allowance -500,Special allo-800.We paid the pf as like (3200+3500) and employee share of (6600*12%=804) and employer share(6600*13.61%=898).
PF enforcement officers are insisting to pay for entire amount ie 8000 or else 20% deduction on Basic+DA as HRA (8000-804=7196),so that employee share becomes Rs.864(12%) and employer share becomes 979(13.61%).Since we are providing accommodation to employees we cant claim HRA under salary head.So the cost even rises to Rs.960(12%) and Rs.1089(13%).
Do any order exist as per PF act when raised the ceiling limit from 6600 to 15000 saying only HRA can be deducted,or is these any existing orders relating to PF saying only Basic+DA only be considered for PF deductions.
It is being heard that there is an order from Finance Ministry saying Basic+DA is to be deducted.
Please help in this regard
Suresh
9645202333
We are into restaurant industry in kerala.We have an employee strength of 248 and employees below 15000 are given pf,esi benefits.We have a split up of salary under various heads like Basic,DA,Washing Allowance,and Special allowance.Since ours is a restaurant industry we provide accommodation,food for employees as per minimum wages act we fixed the basic salary.Take the case of utility boy who draws a salary of 8000,his Basic would be 3200,DA-3500,washing allowance -500,Special allo-800.We paid the pf as like (3200+3500) and employee share of (6600*12%=804) and employer share(6600*13.61%=898).
PF enforcement officers are insisting to pay for entire amount ie 8000 or else 20% deduction on Basic+DA as HRA (8000-804=7196),so that employee share becomes Rs.864(12%) and employer share becomes 979(13.61%).Since we are providing accommodation to employees we cant claim HRA under salary head.So the cost even rises to Rs.960(12%) and Rs.1089(13%).
Do any order exist as per PF act when raised the ceiling limit from 6600 to 15000 saying only HRA can be deducted,or is these any existing orders relating to PF saying only Basic+DA only be considered for PF deductions.
It is being heard that there is an order from Finance Ministry saying Basic+DA is to be deducted.
Please help in this regard
Suresh
9645202333