Hi Seniors, in Delhi, the minimum wage is ₹6656.00. So, how is it possible to deduct EPF because the PF ceiling is ₹6500.00 basic per month? Please guide me as I was working in Haryana state, and Delhi's fundamentals are new to me.
Thanks & Regards,
Shalu
From India, Delhi
Acknowledge(0)
Amend(0)
5Thanks & Regards,
Shalu
From India, Delhi
Acknowledge(0)Amend(0)
There are two options:
1. You can get the exemption from PF.
2. You can deduct ₹780 from the employee's salary and contribute ₹780 from the employer's side. (Making ₹6,500 as the wage ceiling, i.e., 12% of ₹6,500 is ₹780.)
Regards,
From India, Mumbai
Acknowledge(0)Amend(0)
1. You can get the exemption from PF.
2. You can deduct ₹780 from the employee's salary and contribute ₹780 from the employer's side. (Making ₹6,500 as the wage ceiling, i.e., 12% of ₹6,500 is ₹780.)
Regards,
From India, Mumbai
Acknowledge(0)Amend(0)
Ok, Sir. If we take an exemption from PF, what are the formalities of returns? I mean, what is the process or the forms for monthly returns, annual returns, etc.? Please guide me on the form numbers that we have to send to the EPFO office.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
In my assessment, this is the total gross salary, and PF is deducted only on Basic Salaries. You may fix the basic salary from 50% to 80% of the amount ₹6656/-, and then deduct 12% of that amount.
Regards,
Manish Bali
MSL, (Jindal Group)
From India, Delhi
Acknowledge(0)Amend(0)
Regards,
Manish Bali
MSL, (Jindal Group)
From India, Delhi
Acknowledge(0)Amend(0)
BUt I have check online that minimum wage rate is 256.00 per day for Delhi region. So minimum wage is basic salary I think/
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
no minimum wage is not basic salary its totly depend upon your company policy. you can break it in different component.
From India, Calcutta
Acknowledge(0)Amend(0)
From India, Calcutta
Acknowledge(0)Amend(0)
Yes ...Sunil I agree with Sarveshra....you may be confused with basic and minimum wages...you must prepare salary break up as per your company policy. Manish Bali Manager - HR/IR Jindal group of Cos.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Minimum wage is a combination of Basic pay + VDA (Rate decided based on the Cost of Living Index for a particular state). The basic wage can be equal to or more than the minimum wage only. Any company policy will follow the minimum wage for basic wage fixation.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Contribution on not less than Minimum Wage.pdf