Do two Basic salary percentage slabs possible for EPF

Ours in an industry having above 100 labours and 30 white collar employees.

Can we keep two slabs of basic for employee. We wish to keep 100 % basic of Gross salary for labours and 60 % basic for white color jobs.

Will provident fund department object to this?

PF contribution is not limited to the Basic Wages alone, but also allowances which are regular in nature. So, EPFO cannot be expected to toe your line.

There was a latest rule that basic can't be lesser than 50% of Gross salary. My question was in context of that rule.

I understand that EPFO can include certain allowances also in eligible amount.

There is no rule as on date that Basic should be 50% of Gross Salary. As per definition of wages in all labor codes it will 50% of Total Remuneration calculated under the definition of wages.

PF authority has nothing to do with % of Basic with respect to monthly gross. Moreover after the verdict of apex court, PF contribution will also be on other allowances (conditional).

Usually in most of the organization, the % of Basic is different in different grade with respect to monthly gross. This will be common after implementation of labor codes and as per definition of wages.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
[Login to view]
USD HR Solutions – To Strive towards excellence with effort and integrity