Dear HR Fraternity, In view of Supreme Court Judgment on PF and Amendment to ESIC Act, we have modified the salary structures of the employees, which are as follows:
1) Basic
2) HRA
3) Children Edn
4) Washing Allow.
PF calculation and other statutory calculations :
Earlier we have calculated PF contributions only on Basic only. As per SC direction, we are now required to treat other salary components also except HRA. Hence, the PF Gross = Basic + Children Education + Washing Allowance. OK
As of now, we are calculating the Gratuity and Leave encashment on Basic only.
When we arrive the PF gross as Basic+Child. Edn+Washing Allow;
My querry is;
How to calculate Gratuity? Whether only on Basic or PF Gross (Basic + Children Edn. + Washing Allow.) as directed by SC .
Your expert advice is highly appreciable and helpful to HR community.
1) Basic
2) HRA
3) Children Edn
4) Washing Allow.
PF calculation and other statutory calculations :
Earlier we have calculated PF contributions only on Basic only. As per SC direction, we are now required to treat other salary components also except HRA. Hence, the PF Gross = Basic + Children Education + Washing Allowance. OK
As of now, we are calculating the Gratuity and Leave encashment on Basic only.
When we arrive the PF gross as Basic+Child. Edn+Washing Allow;
My querry is;
How to calculate Gratuity? Whether only on Basic or PF Gross (Basic + Children Edn. + Washing Allow.) as directed by SC .
Your expert advice is highly appreciable and helpful to HR community.