Hi
I had attended a grievance program in Bangalore regarding the recent changes in the PF and PF assistant commission was the key answer person in the program. He confirmed that HRA components will not attract the PF. Many has raised the question about fixing the HRA percentage. since there is no proper rule for salary structure, he said it will be case to case basis.
as per my knowledge, salary components vary case to case basis. i.e. Salary components will differ where a company located in cities, villages, hilly areas or costal areas. for example, HRA cannot be same for the company which is situated in City and villages. usually in towns Rent will be more. we have to fix HRA more in this places. we have to consider Income Tax treatment also. if HRA is less than the actual rent paid then it will be affected to claim HRA exemption in IT. all these issues only for those who is drawing salary less than 15K. My suggestion is you can fix HRA 20%-40% of gross (24% is safest since Govt organization in Bangalore maintain the same) if you are in town. frankly speaking, PF official has the power to raise the question about your salary components. you should have the proper justification about your policy.