Hi,
I work as a SE in a private software company and seek some clarification of the rules for the PF account and the basic salary.
Following are the questions on which I seek clarification.
1> Is there any rule stating that the basic salary of the person must be atleast 50% of the gross monthly salary.
2> Can the Company decrease the basic salary to Rs 15,000 and state that the maximum basic salary must be Rs 15,000 even if the gross monthly salary is Rs 1,00,000.
3> Suppose, the gross monthly salary of a person is Rs 1,00,000 (and if the answer to the question 1 is yes), then the PF contribution is based on Rs 50,000 (basic salary = 50% of the gross monthly salary) OR Rs 15,000.
Any links to the documents issue by the EPF would be very helpful.
Thanks in advance.
I work as a SE in a private software company and seek some clarification of the rules for the PF account and the basic salary.
Following are the questions on which I seek clarification.
1> Is there any rule stating that the basic salary of the person must be atleast 50% of the gross monthly salary.
2> Can the Company decrease the basic salary to Rs 15,000 and state that the maximum basic salary must be Rs 15,000 even if the gross monthly salary is Rs 1,00,000.
3> Suppose, the gross monthly salary of a person is Rs 1,00,000 (and if the answer to the question 1 is yes), then the PF contribution is based on Rs 50,000 (basic salary = 50% of the gross monthly salary) OR Rs 15,000.
Any links to the documents issue by the EPF would be very helpful.
Thanks in advance.