Dear Friends,
I am from Pune (Maharashtra) and I require some information regarding the minimum wage for the employees' provident fund. For example, an employee is working in an organization and his wage is 6000/-. However, his Basic is 2500/-. I would like to know the minimum range of Basic.
(The unit is in manufacturing, and the minimum wage is Basic 3530 + Special allowance 955.3)
If anybody has the information available in jurisdiction, please send it to me.
Best Regards,
RV
From India, Pune
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I am from Pune (Maharashtra) and I require some information regarding the minimum wage for the employees' provident fund. For example, an employee is working in an organization and his wage is 6000/-. However, his Basic is 2500/-. I would like to know the minimum range of Basic.
(The unit is in manufacturing, and the minimum wage is Basic 3530 + Special allowance 955.3)
If anybody has the information available in jurisdiction, please send it to me.
Best Regards,
RV
From India, Pune
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Hi,
A company registered under the Factory Act has to deduct PF of employees whose gross salary is up to Rs 6500 monthly. However, if the company wishes and has a policy to deduct PF for employees earning more than Rs 6500 per month, it can do so. The basic salary should be as per the minimum wages, and then various allowances can be added to it. Remember to include allowances like DA, HRA, special allowance, etc., and keep the basic minimum to save on gratuity or tax.
I hope you understood.
Siddharth
From India, Surat
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49A company registered under the Factory Act has to deduct PF of employees whose gross salary is up to Rs 6500 monthly. However, if the company wishes and has a policy to deduct PF for employees earning more than Rs 6500 per month, it can do so. The basic salary should be as per the minimum wages, and then various allowances can be added to it. Remember to include allowances like DA, HRA, special allowance, etc., and keep the basic minimum to save on gratuity or tax.
I hope you understood.
Siddharth
From India, Surat
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As per a standard norm followed by companies, a maximum of 40% of the gross could be fixed as the basic pay. Now, the MP High Court has made a judgment that PF should be deducted not only on the basic but could also be extended to cover allowances like HRA and conveyance (effectively, PF is deductible on the gross salary). Let us wait for recent developments regarding review petitions filed in the MP High Court and being filed in the Madras High Court.
Thanks,
R K Nair
From India, Aizawl
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Thanks,
R K Nair
From India, Aizawl
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PF-Know Employees Provident Fund-CHART-L-4. doc
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