tell me one thing that what minimum rate of basic for pf deduction.Is their any rate chart of basic salary or wages for deduction of PF
From India, Ludhiana
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From India, Ludhiana
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the minimum basic should be 3000rs. other wise u will be questioned at the time of inspection , because i faced the same problem
From India, Delhi
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From India, Delhi
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IF MY ORGANIZATION WE PAY WAGES AS MIN WAGES 3000/MONTH OTHER ALLOW 2000/MONTH INCENTIVE RS 4000/MONTH Pls guide me how to calculate PF
From India, Madras
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From India, Madras
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There is no mention of "minimum wages" in PF act. PF act mentions only about " Basic salary" .. The argument is not correct.
From India, Thana
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From India, Thana
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Dear Sunil,
You have to deduct PF on the Basic+DA part of the salary. There is no chart for this as the Basic+DA (if any) in your company would be guided by the States in which you have employed people. You will have to follow the Minimum Wages of each State where your people are employed. In the States' Minimum Wages, there would be this component of Basic + DA on which you have to pay PF (Employer + Employee share).
Note: In some States, the DA component is merged into Basic, hence you would only see the Basic component. Please don't get confused.
Regards
From India, Mumbai
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6You have to deduct PF on the Basic+DA part of the salary. There is no chart for this as the Basic+DA (if any) in your company would be guided by the States in which you have employed people. You will have to follow the Minimum Wages of each State where your people are employed. In the States' Minimum Wages, there would be this component of Basic + DA on which you have to pay PF (Employer + Employee share).
Note: In some States, the DA component is merged into Basic, hence you would only see the Basic component. Please don't get confused.
Regards
From India, Mumbai
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Dear Sunil,
There is also a possibility of another view. You may pay total gross wages as per the Minimum Wages Act of 1948, and ideally, keep the basic wages at 60% of Gross Salary. The Provident Fund deduction must be at 12% of Basic + DA. The Provident Fund authorities may take a stand that you have deliberately reduced the basic wages compared to what is prescribed under the Minimum Wages Act. This can be well answered with a recent judgment of the Honorable Punjab & Haryana High Court in the matter of Asst. Provident Fund Commissioner vs. G4S Security Services India Ltd.
From India, Mumbai
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There is also a possibility of another view. You may pay total gross wages as per the Minimum Wages Act of 1948, and ideally, keep the basic wages at 60% of Gross Salary. The Provident Fund deduction must be at 12% of Basic + DA. The Provident Fund authorities may take a stand that you have deliberately reduced the basic wages compared to what is prescribed under the Minimum Wages Act. This can be well answered with a recent judgment of the Honorable Punjab & Haryana High Court in the matter of Asst. Provident Fund Commissioner vs. G4S Security Services India Ltd.
From India, Mumbai
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SALARY with out PF Deduction.xls
Splitting of minimum wages for PF in abeyance (1).pdf