I am new to the HR field. I want to understand the PF and basic salary calculation method.
If someone's Cost to Company (CTC) is 15,000/- or less, are they only liable for PF deduction? Or is 15,000/- the limit of the basic salary? You all are experienced and respected by me. Your guidance is very important. Please guide.
From India, Jaipur
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If someone's Cost to Company (CTC) is 15,000/- or less, are they only liable for PF deduction? Or is 15,000/- the limit of the basic salary? You all are experienced and respected by me. Your guidance is very important. Please guide.
From India, Jaipur
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Please go through Sec 2(b), which defines basic wages, and Sec 6, which deals with the calculation of contribution (Employees' Provident Fund & Miscellaneous Act).
1) PF deduction is mandatory for employees whose wages/salary are less than or equal to Rs. 15,000/-.
2) Where the basic salary exceeds Rs. 15,000/-, for the purpose of PF contribution, we can limit the basic wages to Rs. 15,000/-.
Thank you.
From India, Mysore
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11) PF deduction is mandatory for employees whose wages/salary are less than or equal to Rs. 15,000/-.
2) Where the basic salary exceeds Rs. 15,000/-, for the purpose of PF contribution, we can limit the basic wages to Rs. 15,000/-.
Thank you.
From India, Mysore
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Salary Sheet & PF PT Calculation & Challan.xls