Hello,
We are a company paying PF at 12% on 40% of the Gross salary, i.e., basic + DA is 40% of gross. If the salary is Rs. 20,000/-, 40% of the Gross is basic + DA Rs. 8000/-. The PF inspector who had visited the factory insists that it has to be 60% of the Gross towards Basic+DA. Is his view correct as from the reading of the Act, there is no clause under the PF Act which says that one should apply a minimum of 60% of the Gross salary for contribution towards PF. Please reply to this query urgently.
Regards,
P. Bhaskaran
From India, Madras
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We are a company paying PF at 12% on 40% of the Gross salary, i.e., basic + DA is 40% of gross. If the salary is Rs. 20,000/-, 40% of the Gross is basic + DA Rs. 8000/-. The PF inspector who had visited the factory insists that it has to be 60% of the Gross towards Basic+DA. Is his view correct as from the reading of the Act, there is no clause under the PF Act which says that one should apply a minimum of 60% of the Gross salary for contribution towards PF. Please reply to this query urgently.
Regards,
P. Bhaskaran
From India, Madras
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dear Bhaskran, PF Inspector can not insists because pf deduction upper limit is rs 6500/= and you may make celling upto upper limit of pf deduction. as per my view he cann’t force to u.
From India, Delhi
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27From India, Delhi
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Dear [Recipient's Name],
For the bifurcation of salary, please ensure you take care of two things:
1. Make sure that you are deducting PF based on the minimum wages of the state.
2. For higher salaries, as you have mentioned, there is no rule that basic+DA should be 60%. You can ask the inspector to provide this requirement in writing; however, it is your choice, and you can set it at 40%, which should seem reasonable.
Thank you.
J. S. Malik
From India, Delhi
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For the bifurcation of salary, please ensure you take care of two things:
1. Make sure that you are deducting PF based on the minimum wages of the state.
2. For higher salaries, as you have mentioned, there is no rule that basic+DA should be 60%. You can ask the inspector to provide this requirement in writing; however, it is your choice, and you can set it at 40%, which should seem reasonable.
Thank you.
J. S. Malik
From India, Delhi
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