Hi All, my name is Phani Kumar. I recently joined an organization that does not have a proper salary structure. For example, if an employee has a gross salary of 16,500, they fix 15,000 as basic from the gross amount, and the rest is split into Conveyance (1,000) and other allowances (500). The above structure is fixed for the mandatory Employee PF contribution of 1,800.
Proposed Salary Structure Change
I would like to change the salary structure according to PF norms, with Basic being 60% of the Gross, HRA at 40% of Basic, Conveyance at 1,600, and the remainder as other allowances. If I implement the new structure, the Employee PF contribution will be reduced. Do I need to obtain any permission from the local PF office?
Kindly suggest.
Proposed Salary Structure Change
I would like to change the salary structure according to PF norms, with Basic being 60% of the Gross, HRA at 40% of Basic, Conveyance at 1,600, and the remainder as other allowances. If I implement the new structure, the Employee PF contribution will be reduced. Do I need to obtain any permission from the local PF office?
Kindly suggest.