Sir, We have salary components as BASIC (60%), HRA (30%) and CCA(20%). For PF calculation, HRA to be added or not?...kindly explain.
From India, Parangipettai
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From India, Parangipettai
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The PF qualifying salary does not include HRA. All other allowances like CCA in your structure should be part of the PF contributing salary. Though the EPF & MP Act (the principal Act) has not prescribed any limit for the HRA component in the salary for excluding the same from PF contribution, the amendment proposed has put a limit of 20% of the basic salary which can be HRA for exclusion part.
From India, Kannur
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4526From India, Kannur
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf