Dear All, can any one help me regarding PF, in that minimum wages consider as basic or other amount can consider as basic for PF calculation.
From India, Dharwad
Acknowledge(0)
Amend(0)
From India, Dharwad
Acknowledge(0)Amend(0)
For Pf calculation max(ceiling) 6500 basic is to be considered ,if the basic amt is less than 6500 then actual amt is to taken for pf calculation.
From India, Pune
Acknowledge(0)Amend(0)
14From India, Pune
Acknowledge(0)Amend(0)
P.F is to be calculated not merely on Basic but on basic+ D.a + retaining allowance. if any. If minimum wages paid are Rs.6500/- or less, you have to pay contribution on it. B.Saikumar Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
PF has to be deducted on 12% on Minimum wages ,what ever may be the structure of the salary
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear All, Please tell me if I am drawing Rs.10000 as my ctc then what would be my Basic amt. and D.A. Is it differ State to State? Regards, Shona
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear all,
The maximum limit on which PF should be deducted is 6500 (basic), but it depends on the company with mutual agreement with the employee that it is to be deducted if the basic goes above 6500.
Regards,
Shardaprasad
From India, Pune
Acknowledge(0)Amend(0)
The maximum limit on which PF should be deducted is 6500 (basic), but it depends on the company with mutual agreement with the employee that it is to be deducted if the basic goes above 6500.
Regards,
Shardaprasad
From India, Pune
Acknowledge(0)Amend(0)
Dear all,
The maximum limit of PF deduction is Rs. 780 (which is 12% of Rs. 6500). However, it depends on the company's mutual agreement with the employee whether to deduct more than Rs. 780 if the basic salary exceeds Rs. 6500.
Regards,
Shardaprasad
From India, Pune
Acknowledge(0)Amend(0)
The maximum limit of PF deduction is Rs. 780 (which is 12% of Rs. 6500). However, it depends on the company's mutual agreement with the employee whether to deduct more than Rs. 780 if the basic salary exceeds Rs. 6500.
Regards,
Shardaprasad
From India, Pune
Acknowledge(0)Amend(0)
All of your suggestions are apart from the question.
Minimum wage is not a basic amount. You can bifurcate the minimum wage into basic, HRA, etc.
Suppose Haryana's minimum wage is 4847.00, then you can divide it as follows: Basic - 3000.00, HRA - 1347, Con - 500.
From India, Delhi
Acknowledge(0)Amend(0)
Minimum wage is not a basic amount. You can bifurcate the minimum wage into basic, HRA, etc.
Suppose Haryana's minimum wage is 4847.00, then you can divide it as follows: Basic - 3000.00, HRA - 1347, Con - 500.
From India, Delhi
Acknowledge(0)Amend(0)
The contribution to the PF is calculated at 12% of the basic pay, DA, cash value of food concession, and retaining allowance, if any, subject to a maximum of Rs. 6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer. However, the rate of contribution is 10% in respect of the following categories of establishments:
1. Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.
2. Any sick industrial company as defined in Clause (0) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.
3. Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.
4. Any establishment engaged in the manufacturing of (a) Jute, (b) Beedi, (c) Brick, (d) Coir (other than the spinning sector), (e) Guar Gum Industries/Factories.
N.B. Source: EPFO, India
From India, Haora
Acknowledge(0)Amend(0)
1. Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.
2. Any sick industrial company as defined in Clause (0) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.
3. Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.
4. Any establishment engaged in the manufacturing of (a) Jute, (b) Beedi, (c) Brick, (d) Coir (other than the spinning sector), (e) Guar Gum Industries/Factories.
N.B. Source: EPFO, India
From India, Haora
Acknowledge(0)Amend(0)
PF is required to be paid on minimum wages (i.e., including basic and special allowance). There are many judgments wherein courts (I think EPFO has issued a circular also) have upheld that minimum wages should not be further bifurcated (basic/DA/HRA, whatever it may be) for payment of PF contributions. However, if minimum wages paid are more than Rs 6500/- then payment of PF contributions may be limited to Rs 6500 as per the PF Act.
From United States
Acknowledge(0)Amend(0)
From United States
Acknowledge(0)Amend(0)
Dear All, Please tell can it possible that in same company Basic % may differ person to person? and please let me know ESIC is calculated on basic salary or on gross salary. Regards, Shona
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear Sir,
Is there any minimum wage limit for PF deduction of an employee? For example, in Chhattisgarh, the minimum wages for unskilled workers are Rs. 8450/- per month. Suppose an employer divides this wage into two heads, i.e., Basic, HRA, and Conveyance, i.e., Rs. 5070/-, Rs. 2535/-, and Rs. 845/- respectively. Then, on which amount is the employer liable to deduct the amount, on basic or gross? Please consider this question important as it has been troubling me for quite some time.
Thanks and Regards, Dolly Sasmal
From India, Bhopal
Acknowledge(0)Amend(0)
Is there any minimum wage limit for PF deduction of an employee? For example, in Chhattisgarh, the minimum wages for unskilled workers are Rs. 8450/- per month. Suppose an employer divides this wage into two heads, i.e., Basic, HRA, and Conveyance, i.e., Rs. 5070/-, Rs. 2535/-, and Rs. 845/- respectively. Then, on which amount is the employer liable to deduct the amount, on basic or gross? Please consider this question important as it has been troubling me for quite some time.
Thanks and Regards, Dolly Sasmal
From India, Bhopal
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.
Splitting of minimum wages for PF in abeyance (1).pdf
Minimum Wages, ESI & PF.pps