Dear all, Can anyone explain about special allowance?Special allowance is mentioned in my salary break up.Is it compulsory to add special allowance with basic salary , for the calculation of PF.
From India, Kottayam
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1From India, Kottayam
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the residual part of your CTC after adjusting basic, HRA, other tax saving allowances, called spl allowance which is 100% taxable
From India, Lucknow
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From India, Lucknow
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Dear Pon,
Thanks for the perfect explanation!
Companies hire candidates based on a randomly agreed CTC, which is then arbitrarily bifurcated into certain components. Any amount that is left over is termed as special allowance. A corollary to this is:
If the special allowance is increased, the basic pay decreases. The implications of reduced Basic Pay on statutory benefits and deductions are immense and to the disadvantage of the employee.
This scenario does not occur in companies with a well-laid-out compensation strategy and process, where any special allowance is designated for a specific purpose. I hope others can appreciate the significance of the above.
Warm regards.
From India, Delhi
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Thanks for the perfect explanation!
Companies hire candidates based on a randomly agreed CTC, which is then arbitrarily bifurcated into certain components. Any amount that is left over is termed as special allowance. A corollary to this is:
If the special allowance is increased, the basic pay decreases. The implications of reduced Basic Pay on statutory benefits and deductions are immense and to the disadvantage of the employee.
This scenario does not occur in companies with a well-laid-out compensation strategy and process, where any special allowance is designated for a specific purpose. I hope others can appreciate the significance of the above.
Warm regards.
From India, Delhi
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Hi In our company we are payong , basic +hra+cinveyance+medical+special allowance. as recent amendment special allowance also has to be deduct PF. Please suggest wht to do for aviod this
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Prakash, Spl. allowances need not be considered for PF deduction. No such amendment is avl. Pon
From India, Lucknow
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From India, Lucknow
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Dear friends,
I think that the latest judgment states that the special allowance should be considered for PF deduction. I am attaching the judgment copy for your reference and records.
Regards,
Alphonse
9443625359
From India, Madras
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I think that the latest judgment states that the special allowance should be considered for PF deduction. I am attaching the judgment copy for your reference and records.
Regards,
Alphonse
9443625359
From India, Madras
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What allowances are offered to employees through a partnership firm?
I am currently employed in a partnership firm and am responsible for creating pay slips. I would appreciate your assistance in determining the types of allowances that should be included in the pay slips. In our firm, we do not deduct PF and ESI contributions; only TDS deductions are made.
I kindly request guidance on the new amendments that need to be considered.
Thank you all!
From India, Nabha
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I am currently employed in a partnership firm and am responsible for creating pay slips. I would appreciate your assistance in determining the types of allowances that should be included in the pay slips. In our firm, we do not deduct PF and ESI contributions; only TDS deductions are made.
I kindly request guidance on the new amendments that need to be considered.
Thank you all!
From India, Nabha
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PF Notification on special allowance.pdf