Hello All
Good day everybody. I am quite confused about PF deductions. I have read many posts on the internet and some claim that PF deductions has to be done for BASIC + DA (12%) and some tell that PF deductions have to be done only on BASIC (12%).
Which is exactly right ?????
I looked on to the PF rules PDF posted on the internet which clearly tells that it should be BASIC + DA. (12%). Our company does the same. However, employees still feel that their takehome is too low.
I recently looked on to other company's salary slip which was as follows:
BASIC 6700
HRA 4020
CCA 2208
Monthly bonus 292
Gross : 13220
Deductions PF : 804
ESI : 232
Professional Tax : 183
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I never see something like DA. Is this the right deduction. In my company there is BASIC, DA and HRA alone. So we are deducting 12% from basic + da. Please let me know what is the workout or tirck that can be done. Our company is in Chennai. Please advise.
Thanks for your time.
Good day everybody. I am quite confused about PF deductions. I have read many posts on the internet and some claim that PF deductions has to be done for BASIC + DA (12%) and some tell that PF deductions have to be done only on BASIC (12%).
Which is exactly right ?????
I looked on to the PF rules PDF posted on the internet which clearly tells that it should be BASIC + DA. (12%). Our company does the same. However, employees still feel that their takehome is too low.
I recently looked on to other company's salary slip which was as follows:
BASIC 6700
HRA 4020
CCA 2208
Monthly bonus 292
Gross : 13220
Deductions PF : 804
ESI : 232
Professional Tax : 183
-------------------------------------------------------------------------------
I never see something like DA. Is this the right deduction. In my company there is BASIC, DA and HRA alone. So we are deducting 12% from basic + da. Please let me know what is the workout or tirck that can be done. Our company is in Chennai. Please advise.
Thanks for your time.