Employer's Contribution to PF in Gross Salary
Can an employer's contribution to PF be shown as a component of Gross Salary, instead of being shown as a Retirement Benefit component? If yes, is it legal? If it is not legal, what are the implications of doing so?
Awaiting your inputs. It's a little urgent and important.
Best regards,
From India, Pune
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2Can an employer's contribution to PF be shown as a component of Gross Salary, instead of being shown as a Retirement Benefit component? If yes, is it legal? If it is not legal, what are the implications of doing so?
Awaiting your inputs. It's a little urgent and important.
Best regards,
From India, Pune
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Thanks for the reply and attached sheet, Nisha! I completely agree with you. However, in recent times, I have seen a few companies practicing and showing the EMPLOYER'S CONTRIBUTION towards PF as a GROSS SALARY component. I just want to understand from all seniors whether it is a correct practice being followed nowadays by certain organizations.
As far as my knowledge goes, GROSS SALARY is the gross earning of an employee, whereas "Employer contribution towards PF" is a mandatory statutory benefit which is a part of the "Retirement Benefit component." Awaiting more inputs/responses from everyone.
From India, Pune
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As far as my knowledge goes, GROSS SALARY is the gross earning of an employee, whereas "Employer contribution towards PF" is a mandatory statutory benefit which is a part of the "Retirement Benefit component." Awaiting more inputs/responses from everyone.
From India, Pune
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf